US$30bn a year cost to help developing country adopt sustainable technologies

While not exactly on the topic of sustainable telecommunications practices, a speech made by US Treasury Under Secretary David H. McCormick on China’s Journey to Environmentally Sustainable Growth at the West Coast Leadership Dialogue 2008, revealed some interesting figures on the role of the developed world in not only reducing carbon emission levels, but to ensure that the developing world are following similar directions.

In his address, McCormick refers to the investment that will be needed in the time leading to 2030 just to satisfy the world’s growing energy requirements. More importantly, he highlights the fact that to ensure the developing world also deploys low carbon infrastructure when meeting their energy demand – as opposed to cheaper but less eco-friendly systems – developed countries may have to foot an annual bill of US$30 billion or more.

“The growing global demand for energy will require enormous investments in technology and infrastructure. The International Energy Agency, for example, estimates that some $22 trillion will be invested in energy-supply infrastructure alone between 2006 and 2030, with $10 trillion of that sum being invested in the developing world,” McCormick said. “Estimates of the incremental cost necessary to ensure that these investments are made in lower carbon infrastructure vary, but among developing nations, it could be $30 billion or more per year. That’s $30 billion these countries need for technologies that are available today to fuel growth in an environmentally friendly way.”

As a solution, he cites a proposal by the Bush administration to establish an “international Clean Technology Fund” with the US as the lead donor. The multi-billion dollar fund will help finance the cost of cleaner technology investment in developing countries, he said.

The objectives of the fund are to:

(1) Reduce emissions growth in major developing countries through the accelerated deployment of clean technologies;

(2) Stimulate private sector capital by making challenging, high impact clean energy projects more attractive investments; and,

(3) Encourage major emerging economies to participate in a new global climate framework and adopt environmentally-friendly policies and investments.

McCormick also highlighted the impact of China’s surging energy demand on global energy markets and the negative impacts on the country’s environment, as well as recent agreements between the US and China to address energy issues.

These include a commitment by the Chinese government to develop and implement, with technical support provided by the US, a nationwide program on sulfur dioxide emissions trading in the power sector; a joint five year agreement to promote the large scale deployment of alternative fuel technologies for vehicles, including electric, hybrid-electric and fuel cell technologies; strengthened cooperation on strategic oil reserves, including cooperation with the International Energy Agency; and a memorandum of understanding to combat illegal logging and to promote sustainable forest management.

To read the full transcript of the speech by Treasury Under Secretary David H. McCormick

http://www.treas.gov/press/releases/hp761.htm

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Tags: China, energy demand, US

Category: Global energy