Climate fight cost estimate rises

The fiscal costs of efforts to avoid treacherous levels of global warming may be 170% higher than 2007 estimates, reported Reuters, citing a report for the United Nation's climate agency. The report comes days before the UN climate talks in Poznan, Poland that are expected to be marred with countries' discussion of how to divide the economic burden of fighting global warming.


The UN report — entitled "Investment and financial flows to address climate change: an update" — showed that growing capital costs, especially in the energy sector, were to blame for the increased investment. "This increases the scale of the challenge to generate additional investment and financial flows," said the study.


The unprecedented demand for eco-friendly energy sources driven by countries’ climate and energy security policies has partially contributed to fuelling the rising capital costs.


Last year the corresponding study indicated that the additional investment required to cut greenhouse gas emissions by a quarter by 2030 would be US$200 to US$210 billion per year. That figure included only the capital cost of the measures, but excluded other costs such as R&D as well as the benefits from fuel savings from improved efficiency.


See full story