G8 backs carbon trading, progress on energy fund
(For more G8 summit stories, click on [G7/G8])
By David Fogarty
TOYAKO, Japan, July 8 (Reuters) - G8 leaders meeting in Japan on Tuesday pledged to promote clean energy and carbon trading schemes to curb greenhouse gas emissions and recognised the importance of sustainable biofuel production.
In language that carefully acknowledged the importance of country-specific goals, the Group of Eight said in its statement on climate change that substantial money would be needed for developing nations to access clean energy.
The G8 leaders, meeting on the northern Japanese island of Hokkaido, said significant progress had been made on a clean energy investment accord that could total more than US$100 billion up to 2010.
They also recognised the need to set midterm, aspirational goals for energy and the usefulness of sectoral approaches for industries to curb emissions.
"We promote clean energy, given its importance in tackling climate change and for the enhancement of energy security, by setting national goals and formulating action plans followed by appropriate monitoring," the G8 said in the statement.
It also said the G8 recognised the important role of renewable energy in tackling climate change and reducing dependency on fossil fuels but didn't detail how they would promote renewables.
Carbon trading was another component in a global plan to reduce emissions, they said.
"Market mechanisms, such as emissions-trading within and between countries, tax incentives, performance-based regulation, fees or taxes and consumer labeling can provide pricing signals and have the potential to deliver economic incentives to the private sector," it says.
"We intend to promote such instruments in accordance with our national circumstances and share experience on the effectiveness of the different instruments."
The group recognised the importance of the sustainable use of biofuels but didn't outline how they would address criticisms over soaring food prices by using corn and other crops to make fuels.
"We underscore the importance of sustainable biofuel production and use. The same should apply for the broader use of biomass for fuel, heat and electricity," it says.
The leaders pointed to progress in a fund to promote clean energy in developing nations.
"We note the significant progress made by the multilateral development banks on the Clean Energy Investment Framework (CEIF) agreed at Gleneagles (in 2005) and welcome their joint level of ambition to mobilize public and private investments of over US$100 billion up to 2010 from within existing resources."
A British official told Reuters the fund already had $44 billion that had been redirected from other sources. The official said the remainder would come from private investment and that the World Bank aimed to use the fund to encourage poorer states to build cleaner energy projects.
The fund would cover the gap in costs between dirtier power projects, such as those using coal, and cleaner projects as an inducement. (Editing by Hugh Lawson)
By David Fogarty
TOYAKO, Japan, July 8 (Reuters) - G8 leaders meeting in Japan on Tuesday pledged to promote clean energy and carbon trading schemes to curb greenhouse gas emissions and recognised the importance of sustainable biofuel production.
In language that carefully acknowledged the importance of country-specific goals, the Group of Eight said in its statement on climate change that substantial money would be needed for developing nations to access clean energy.
The G8 leaders, meeting on the northern Japanese island of Hokkaido, said significant progress had been made on a clean energy investment accord that could total more than US$100 billion up to 2010.
They also recognised the need to set midterm, aspirational goals for energy and the usefulness of sectoral approaches for industries to curb emissions.
"We promote clean energy, given its importance in tackling climate change and for the enhancement of energy security, by setting national goals and formulating action plans followed by appropriate monitoring," the G8 said in the statement.
It also said the G8 recognised the important role of renewable energy in tackling climate change and reducing dependency on fossil fuels but didn't detail how they would promote renewables.
Carbon trading was another component in a global plan to reduce emissions, they said.
"Market mechanisms, such as emissions-trading within and between countries, tax incentives, performance-based regulation, fees or taxes and consumer labeling can provide pricing signals and have the potential to deliver economic incentives to the private sector," it says.
"We intend to promote such instruments in accordance with our national circumstances and share experience on the effectiveness of the different instruments."
The group recognised the importance of the sustainable use of biofuels but didn't outline how they would address criticisms over soaring food prices by using corn and other crops to make fuels.
"We underscore the importance of sustainable biofuel production and use. The same should apply for the broader use of biomass for fuel, heat and electricity," it says.
The leaders pointed to progress in a fund to promote clean energy in developing nations.
"We note the significant progress made by the multilateral development banks on the Clean Energy Investment Framework (CEIF) agreed at Gleneagles (in 2005) and welcome their joint level of ambition to mobilize public and private investments of over US$100 billion up to 2010 from within existing resources."
A British official told Reuters the fund already had $44 billion that had been redirected from other sources. The official said the remainder would come from private investment and that the World Bank aimed to use the fund to encourage poorer states to build cleaner energy projects.
The fund would cover the gap in costs between dirtier power projects, such as those using coal, and cleaner projects as an inducement. (Editing by Hugh Lawson)
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