UN Report Helps Developing Nations Go Green
New York, Oct 26 2009 10:10AM
A new United Nations-backed report released today details how to ensure that developing countries are part of the transition to a ‘green’ economy.
With some $500 billion a year
expected to be needed to help poorer nations adapt to
climate change and at the same time power low-carbon growth,
the funds must come from the private sector but that
requires creative public policies, according to the study
issued by the UN Environment Programme (UNEP) and a global
partnership of investors and insurance
companies.
“Combating climate change represents an
important opportunity to move economies onto a low carbon,
resource efficient, Green Economy path,” said Achim
Steiner, UNEP’s Executive Director. “If this is to
succeed, developing countries should and must be part of
that transformation.”
The new report, he said, shows
how current barriers to shifting to a low carbon economy can
be “leap-frogged,” paving the way for a new North-South
relationship.
Issued today in Cape Town, South Africa,
it calls for expanding insurance against country risk and
for funds to hedge currency risk, among other
recommendations.
A recent study commissioned by the UN
Framework Convention on Climate Change (UNFCCC) found that
the private sector will have to supply up to 90 per cent of
the funds needed to meet the climate challenge, but that at
present it is unwilling to undertake large investments in
developing countries due to the limited returns on
low-carbon investments.
The report issued today –
entitled “Catalysing Low Carbon Growth in Developing
Economies: public finance mechanisms to scale up private
sector investment in climate solutions” – urges an
effective distribution of roles between the public and private
sectors.
With appropriate public finance mechanisms,
the public sector can help manage risks that the private
sector cannot control, it noted.
For more details go
to UN News Centre at http://www.un.org/news
ENDS