The European debt crisis and the US economic slump are pushing global warming concerns down the political agenda, reducing the chance for an accord limiting climate change this week.
“The threat of worsening economic conditions is the ghostly figure at the window for everybody," Edward Cameron of World Resources Institute said as delegates met for the United Nations climate talks.
Envoys have scaled back ambitions for this year’s meeting, which will end on Friday. European Union leaders will meet in Brussels that day to discuss a $US270 billion bailout for indebted nations. President
“The credit crisis in Europe shouldn’t be used as an excuse for reneging on contributions to climate finance," said Dessima Williams, Grenada’s ambassador to the UN who speaks on behalf of the 42-member Alliance of Small Island States. “Climate change and the financial crisis were created in the industrialised world."
Henry Derwent, president of the International Emissions Trading Association, said the EU debt crisis had “increased unwillingness of finance ministers to put their hands in their pockets".
“And another effect of a downtown in the economy is that people don’t want permits to emit."
Edna Molewa, South Africa’s lead negotiator, warned against putting climate change on the sidelines to deal only with immediate financial problems.
“We don’t underestimate the fact that the world is in a recession, and things aren’t getting easier," she said. “Crises come and go, but the problem of climate change may actually exacerbate the problem.
“It may lead to a further crisis."
Mr Cameron said in spite of concerns hanging over the talks, he was optimistic countries could “find the political will to take positive steps in Durban that safeguard the climate, catalyse green investment and stimulate the world economy".
The talks hinge on the ability of industrial nations to channel as much as $100 billion a year in aid to developing nations for combating climate change.
US lead negotiator Todd Stern has said he cannot say whether the Obama administration will fulfil its promise to provide $US1 billion for forest projects in 2010-12.
“I’m not going to guarantee," he said in Washington. “We are working very hard to provide the maximum amount that we can."
The Australian Financial Review