By Mathew Carr
Nov. 13, 2021 — Glasgow: A negotiator for a giant developing country said late yesterday the Article 6 texts were “evolving” and taking a “share of proceeds” from the value of carbon transactions can help emerging nations adapt to global heating.
It’s a neat solution, because the global carbon markets can not only help rich countries that have caused the climate crisis to manage the risks of the transition to cleaner economies … they can help finance the needs of poorer nations, who are suffering most.
Developing countries can leap frog the wealthy into cleaner economies.
For context, putting a $100 per ton price tag on the world’s 40 billion tons or so of greenhouse gas would raise $4 trillion EVERY YEAR. EU carbon prices are already about $70 and that’s barely hurt the economy. Indeed the climate transition is creating jobs.
Polluters need to pay and the revenue can help protect the poor (also the poor in rich countries, by the way)
Money for cutting emissions is easier to come by, because the sale of carbon credits can potentially finance green hydrogen, distributed energy, high-tech batteries and efficient new power grids — where and while carbon finance is genuinely needed.
Adaptation finance is more difficult to come by. Flood defences don’t necessarily generate income. That’s why negotiators here in Glasgow are working late into the night to try agree a share of proceeds that’s fair. The range being looked at is approximately 5% to 30% of the value of carbon transaction.
Developing countries need about $5.9 trillion to adapt to warming and limit their emissions growth. That would allow them to meet MORE AMBITIOUS emission limits in their climate pledges by 2030 — these are known as Nationally Determined Contributions. These pledges were conditional on getting extra finance, but it’s so far failed to turn up.
Emerging countries are severely frustrated, with one asking: why put countries through the NDC process and get them to set conditional targets if rich countries are just ignoring those plans?
Envoys are quibbling about $100 billion a year of finance.
Rich countries have found plenty of money to protect themselves from the ravages of the pandemic, but they are not willing to clean up their own mess, apparently.
And this on QE: