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Unlocking finance is key to a low carbon future
- Moving the world to a low-carbon economy requires decisive action, clarity and commitment from every nation.
- The International Energy Agency (IEA) estimates that the internationally recognised goal of limiting the rise in global temperatures to 2°C degree goal will require additional investment of $15,200bn in the energy sector up to 2035, above and beyond current ambition.
- So there are three key priorities that we must address if we are to unlock the finance and make the transition: delivering confidence that an international climate change agreement will follow; encouraging governments globally to create the right environment for investment through policy clarity and financial support; and demonstrating that a low-carbon development pathway can be done sustainably and affordably.
- At Durban, we want a clear commitment to this final deal from the big economies, alongside progress on the building blocks of the international regime — delivering international public finance, monitoring and reporting of global emissions and development of rules for accounting for countries' emissions. All of this helps provide the TLC — transparency, longevity and certainty — needed for businesses and governments to make sound investments in low-carbon technologies.
- there is now no excuse for governments to hold back from taking action in their own countries.
- Many countries are making significant progress already in terms of implementing their international pledges to tackle their emissions, but we need to encourage greater levels of ambition.
- The U.K. is determined to show that a lowcarbon economic strategy is not only affordable but can drive growth, support advanced manufacturing and reinforce the competitiveness of industry.
- We are also undertaking radical reforms designed to create new markets and attract greater amounts of private investment into the U.K. For example, we have legislated for the Green Deal, the first scheme of its kind in the world, which will cut carbon and bills in millions of homes and businesses across the UK.
- Despite the massive deficit that the U.K. coalition government inherited, we are putting our money where our mouth is: slashing Whitehall's own emissions by 13.8 per cent in our first year in government; investing £3bn of public money to create the world's first dedicated Green Investment Bank; £860m for the Renewable Heat Incentive; and £1bn to the development of carbon capture and storage.
- Helping developing countries in that shift benefits the U.K. For example, improving energy efficiency and moving away from a dependence on fossil fuels helps to reduce global energy prices and volatility. This is why we are providing £2.9bn of funding to international climate mitigation and adaptation measures over the next four years through the International Climate Fund.
