The Economic Cost of Global Climate Mitigating Action

Filed in archive Capital Investing on May 5, 2007

The Intergovernmental Panel on Climate Change said that the world could mitigate climate change now through an energy revolution that would cost a fraction of global growth requirements if and only if all governments act now. Through a report it issued this week, the IPCC said:

■ putting a cost on green house gas pollution from fossil fuel use of $US 20 to 50 per ton used would reduce emissions significantly by 2050.

■ renewable energy resources would thus be competitve and would increase its market share of up to 30 even 35 percent by 2030.

■ nuclear is an option but its high costs and other unresolved issues may mean a total contribution of only 2% of the world's electricity requirement by 2030.

■ coal may still have a huge contribution by 2030 if Clean coal technologies are used and proliferated.

■ energy efficiency would have to be a rigid feature of any energy program to reduce emissions by 2030.

These are all well rounded suggestions from a panel of scientists and climate change leaders but will governments listen? What will be the US and China's reaction to these suggestions and how would this impact national energy and economic policies? Lets hope the drop in the pool caused by this IPCC report makes ripples that turn transform into waves, instead of being lost and forgotten.

What do you guys think? Read more about this story here.

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