Business says needs cash to cut CO2 emissions

By Gerard Wynn

COPENHAGEN (Reuters) - Industry needs financial backing to reduce carbon emissions and fight climate change, business leaders told a climate conference on Monday, drawing criticism that they put profits before the environment.

The May 24-26 meeting of more than 500 business leaders will issue a call for governments to set clear long-term climate policies when they meet in Copenhagen in December to try to reach a new global climate pact to replace the Kyoto Protocol.

"The big constraint is funding," said Steve Lennon, managing director of South African utility Eskom, referring to the need to cut the cost of alternatives to fossil fuel energy.

"This is not about capability, it's about cost," said Tony Hayward, chief executive of British oil company BP. "The issue is the gap between the energy that is provided today and the energy that we're talking about and which today is more expensive."

BP has a joint venture with mining company Rio Tinto to split fossil fuels into hydrogen and carbon dioxide, bury the latter and sell the hydrogen as a clean fuel to utilities -- but says it needs public funding support.

A leading consultant said companies are aware of the strong public concern about global warming and do not want to be seen not to be supporting measures to slow climate change.

"Oil companies are talking about their renewable energy portfolios but investing in fossil fuels," said Adam Werbach, chief executive of Saatchi & Saatchi S, a marketing and consultancy company.

"This is the amazing effectiveness of PR (public relations) in the last decade. A decade ago people actually said what they thought. Now it's behind the scenes."