Carbon emissions could rack up $4.5tr in losses

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"If you take the upper limit, it is much higher than the $2.4 trillion (Dh8.8 trillion) lost in the recent financial crisis globally," Pavan Sukhdev, project leader for Green Economy at the United Nations Environment Programme (UNEP), told a briefing at the World Economic Forum's Global Agenda Summit being held in Dubai.

Global warming comes with a big price tag for every country in the world.

The 80 per cent reduction in US emissions needed to stop climate change may not come cheaply, but the cost of failing to act will be much greater, said a latest report by the Natural Resources Defence Council.

"New research shows that if present trends continue, the total cost of global warming will be as high as 3.6 per cent of gross domestic product (GDP).

Consequences

"We know how to avert most of these damages through strong action to reduce the emissions that cause global warming. But the longer we wait, the more painful — and expensive — the consequences will be."

Officials have urged the global leaders to stop foot-dragging and come to a definite global climate change framework at the next month's Copenhagen Summit that is doable and scalable and periodically monitor the progress through a global carbon registry.

Caio Koch-Weser, vice-chairman of Deutsche Bank Group, urged the global leaders to agree on a 100 billion euro financing programme for the next 10 years that will help achieve lower carbon emission target.

"The 100 billion euro fund, could be partly financed by the big countries and institutions in equity and the majority through debt financing, could be invested in projects that are intended for lower carbon emission."

He said, private sector could play a greater role in lowering carbon emission plan.

However, the move has to be through a bottom-up approach, involving the private sector and communities. "If you give the private sector a framework, policy and price guideline, most of the problems with regards to climate change will be solved," he said.

"You'll see a lot of start-ups coming up to support the lower carbon targets."

Carlos De Souza Braza, Governor of the Brazilian state of Amazon, said, he believed lower carbon emission target could be achieved through empowering communities.

Carbon reduction

Giving examples of his state, how investment in communities, infrastructure, has helped the local communities to reduce carbon emissions and reduction in deforestation.

"We must create funds for local communities to empower them to reduce carbon emission," he said.

Brazil has reduced deforestation by nearly a fourth.

There is a growing optimism that the Copenhagen Summit could help the global leaders to reach a broader climate change agreement.

Richard Samans, managing director of WEF, said, he expects a wider menu and a broader political agreement among global leaders in climate change.

"Japan and European Union have pledged a 25 per cent and 30 per cent emission reduction which is a huge progress in achieving lower carbon emission target."

Steve Howard, chief executive of the Climate Group, UK, said, there is a reasonable optimism for domestic legislation that will kick-start the move for carbon emission businesses.

"Both China and the US will play a big role in this. We can see strong political will and agreement coming up," he said

Koch-Weser said, China has set up more wind powered power plants than those installed by the UK in the last 20 years.

Environment

cost of global warming

Energy costs

$141 billion in increasing energy costs as a result of the rising demand for energy.

Water costs

$950 billion to provide water to the driest and most water-stressed parts of the United States as climate change exacerbates drought conditions and disrupts existing patterns of water supply.

Hurricane damages

$422 billion in economic losses caused by the increasing intensity of Atlantic and Gulf Coast storms.

Real estate losses

$360 billion in damaged or destroyed residential real estate as a result of rising sea levels.

— S.R.

By Saifur Rahman

© Gulf News 2009. All rights reserved.