Articles by ecothrust at Technorati Headline Animator

Friday, December 18, 2009

The leaked EU draft and the $100 billion Carbon bait : COP15# End Game

http://bit.ly/7XwAG



The EU counterpunch against the Sudan sponsored walk out at the COP Conference and blocking of modifications in the draft treaty by the BASIC countries was hatched in London early this week. In a typical operation resembling the days of the Raj, the Ethiopian Prime Minister was whisked away at London to agree to a $100 billion financing offer on behalf of Organisation of African nations . Yet another dubious financing package for the poor. Famine hit and war ravaged destitute Ethiopia would
be only too happy to lay hands on anything it got, without understanding the details of what that package really meant, and that would mean a huge victory for EU if the
G77 could be split, as the EU supremacy was being severly challenged.

The deal details were acceptance of the Danish deal (erstwhile Australian deal ) as under was in lieu of a package comprising of a mix of private and government funds to funnel up to $40bn (£25bn) a year to developing countries. This would be far more ambitious than the short-term fund of $10bn a year currently put on the table, but still a pittance considering the obligation escape clause it provided to the G 7.

The balance $ 60 billion would be generated by as per the Carbon trade markets ( meaning that cheaper offsets in Africa’s poorest nations would help the rich nations create emissions worth carbon credits of $ 60 billion in their own countries. In case the carbon markets did not offer higher return, this amount could be much lower.

Our energy mathematics http://bit.ly/55yAsZ show that the total Carbon market proceeds in US last year has be only $ 366 million and globally around $1 billion. So since the language of the E.U. deal clearly says that it would help Africa raise the balance $60 billion through carbon markets, it means that there is no commitment of development aid on that account. So the effective finance deal in offer remains only for $ 40 billion , a part of which would be private finance. That again meant raising debt and borrowing from the Banks or Wall streets infamous moneybags, subject to their conditions. So effectively the aid to the poorest of the poor would be only $ 10 billion only. The U.S. Secretary of State Hilary Clinton gave a last minute clearance of this deal, but added several other conditions which was summarily dismissed by the G77 as too late, too complex.

The Danish Accord or the EU deal wants in return the following.

1) Annulment of Kyoto pact as 3 major G7 nations are in process of defaulting

2) A new emissions pact with 2005 ( not 1990 ) as base year in which all GHG gasses
are included , so that the emphasis on carbon and fossil fuels are diluted, and business as usual of the utilities and steel plants can continue.

3) The pact must include all 192 nations with peaking year mentions suggested 2015 in case of China and India


4) Force developing countries to agree to specific emission cuts and measures that were not part of the original UN agreement;

5) Divide poor countries further by creating a new category of developing countries called "the most vulnerable" who will be only given conditional finance ;

6)Weaken the UN's role in handling climate finance;

7) Not allow poor countries to emit more than 1.44 tonnes of #carbon per person by 2050, while allowing rich countries to emit 2.67 tones .per person.

It is highly unlikely that any agreement in #Copenhagen can be reached under the above circumstances, with such conditions. The world leaders if they at all come will only shake booty and do nothing.

The watered down politicial statement of the leaders after the U.S. President Obama arrives will be tall on talk and slow on walk. But Thankfully Kyoto will not be undone.

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