New international climate agreement would saddle Finland with sizeable supplementary bill

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If the new international climate agreement materialises, it will add up to hundreds of millions of euros to Finland’s annual bill, said Minister of the Environment Paula Lehtomäki (Centre) in Helsinki on Monday.
      This is because in the ongoing negotiations the developing countries insist that finding an agreement calls for massive financial support for them from the industrialised nations.
      The support would be spent on the transfer of technologies as well as getting adjusted to climate change.
      In other words, the support could be in the form of wind and solar power equipment. The assisting with the adjustment to climate change could include, for instance, prevention of drought or erecting flood banks.
     
According to Lehtomäki, the tropical storm that just devastated the Cuban coastline illustrates perfectly what kind of detriments the aid would be used to tend off in the third world.
      “If an agreement is reached, it is clear that a strong financial contribution is required from the industrialised countries in order for the developing countries to be able to share in the prevention of climate change and adapting to whatever it brings”, Lehtomäki said.
      So far there are no precise figures available, as the negotiations are still under way.
      “Hopefully the contract will come into effect in 2013.” The additional bill should then be visible in the government budget as well.
     
How much each developed country has to pay depends on the size of the economy: the larger the gross national product, the more the country has to support the developing countries.
      Lehtomäki pointed out that even between the developing countries there are huge differences. Therefore, more can be expected for example from the relatively industrialised China than, say, from Bangladesh.
      Lehtomäki emphasised that the support called for from the developed countries is not a mere burden. It can open great opportunities even for the Finnish industries.
      Companies such as Wärtsilä and WinWinD, to name but a couple, may greatly benefit from the developing countries’ subsidised technology transfer in the form of equipment orders, Lehtomäki speculated.
     
According to the Kyoto Protocol, industrialised nations are required to cut down their emissions of greenhouse gasses by 5.2 per cent from the 1990 level. This decrease is to be achieved between 2008 and 2012.
      The ongoing negotiations deal with a new climate agreement and additional curtailments. The aim is to complete the negotiations by 2009 and to have the new contract come into force in 2013.
      The European Union has already committed itself to reduce the emissions of greenhouse gases by 20 per cent by the year 2020.
      The Union promises up to 30 per cent reductions if the international community can agree on a large climate package.


Previously in HS International Edition:
  EU energy package to hit consumers in coming years (24.1.2008)

Links:
  Kyoto Protocol (Wikipedia)

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