A New Green Deal?

Can a “Green New Deal” revive the world economy and protect the environment?

The head of the U.N. environment agency asked this and suggested a tax on oil to fund it.  Investments of one percent of global gross domestic product, or about $750 billion, could bankroll a “Global Green New Deal” inspired by the “New Deal” of U.S. President Franklin D. Roosevelt that helped end the depression of the 1930s.

Achim Steiner said spending should focus on five environmental sectors including improved energy efficiency for buildings and solar or wind power to create jobs, curb poverty and fight climate change.

“The opportunity must not be lost,” Steiner, head of the U.N. Environment Program (UNEP), told Reuters of a UNEP study that will be put to world leaders meeting in London on April 2 to work out how to spur the ailing economy.

The UNEP report said Investments should be split between more energy efficient buildings, renewable energies, better transport, improved agriculture and measures to safeguard nature — such as fresh water, forests or coral reefs, it said.

Steiner floated the possibility of taxing oil in rich nations of the Organization for Economic Cooperation and Development (OECD) to help a new pact become the cornerstone of a greener economy.  “If, for argument’s sake, you were to put a five-year levy in OECD countries of $5 a barrel, you would generate $100 billion per annum. It translates into roughly 3 cents per liter,” he said.  It would be almost, if not totally, unnoticed by the consumer,” he said, especially since oil prices have fallen from more than $140 a barrel at mid-2008 peaks to about $40.

“The argument that we cannot afford this does not, on any serious analysis, hold much water — especially given the cost to the global economy of failure to act on climate change,” he said.

Steiner said that emission trading and carbon markets are unlikely to contribute enough cash in early years of a new climate deal.  He went on to say that there were promising signs that economic stimulus packages by many nations, ranging from the United States to China, were being tailored to help a shift toward greener growth and away from dependence on fossil fuels.

The U.N. Climate Panel says that greenhouse gases from burning fossil fuels are a prime cause of warming that will cause more heatwaves, droughts, rising sea levels and more powerful storms.

Technorati Tags: carbon markets, environment, economy, energy, emission trading, greenhouse gases, fossil fuels

Jean Cannon

Jean is an award winning consultant and trainer helping people and businesses around the world who want greater efficiency and reduced stress!

If you sometimes need to deal with staff errors and what is even worse, covered up errors that come back to bite, you are riding a time bomb and Jean will help you defuse it. Plus get you real recognition from markets and regulators.

The good news is that this is now available as online training so you only need to commit to one hour per week and no travel. You can even Do-It-Yourself! .

Tweet This Post

This entry was posted on Friday, April 3rd, 2009 at 2:31 am and is filed under Global Warming, Climate Change & Energy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.