Panorama
 
 
 
 
 

SCRAPPING COAL AND OIL SUBSIDIES A BOOST FOR WOBBLING WORLD FINANCIAL SYSTEM


Environmental Panorama
International
June of 2010


Posted on 24 June 2010
Ottawa, Canada: G20 countries facing problems with economy-threatening budget deficits could release billions in funds by fulfilling promises they made last year to pull back huge subsidies on fossil fuels, WWF said today.

“Recent work has estimated that globally more than US$500 billion a year goes into subsidising fossil fuel production and consumption, roughly ten times the annual amount estimated as adequate to meet global Millennium Development Goals for eradicating poverty,” said Kim Carstensen, leader of WWF’s Global Climate Initiative.

The global environment group strongly supported last years push by the G20 to reduce climate change emissions by an estimated 10 per cent by 2050 by phasing out subsidies on gas, coal and oil and derivatives including electricity.

At the 2009 Pittsburgh G20 summit leaders noted that “inefficient fossil fuel subsidies encourage wasteful consumption, reduce our energy security, impede investment in clean energy sources and undermine efforts to deal with the threat of climate change”.

Finance ministers of the world’s largest economies were directed to report to their leaders meeting in Toronto, Canada in late June 2010 with implementation strategies and timetables. With that deadline now imminent, there are fears many states are lagging in meeting this deadline.

“We are expecting studies that will identify and show how much is spent in each country on fossil fuel energy subsidies, which in turn will show how big a hole these are burning into budget deficits,” said Carstensen.

“As the G20 nations themselves recognise, the money is only part of the equation. Reducing fossil fuel use through reducing subsidies would encourage efficiency, increase energy security, reduce emissions and even benefit health. The boost it would give to struggling economies is yet another bonus.”

The G20 nations account for close to 90 per cent of global GDP and nearly 80 per cent of global CO2 emissions.

Some consumer subsidies – directed to meeting the energy needs of the poor in developing countries and replacing health-threatening cooking fuels with cleaner alternatives – may be justifiable, WWF noted.

“G20 nations that couldn’t deliver a significant agreement on climate change in Copenhagen are still holding out the possibility that they could deliver on a significant agreement on energy subsidies,” said Carstensen

“We are looking to leaders to ensure that their fine words of a year ago are not allowed to degenerate into a debate on how to define fuel subsidies.”

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Politics of climate change transformed as leader dumped for not acting

Posted on 24 June 2010
Gland, Switzerland: In what may come to be seen as a pivotal moment in the global politics of climate change, members of Australia’s ruling Labor Party today dumped Prime Minister Kevin Rudd in favour of his deputy, Julia Gillard.

The basis of the sudden and largely unexpected coup was a slide in polls which many commentators attributed to Rudd’s April decision to abandon efforts to push a Carbon Pollution Reduction Scheme (CPRS) through a hostile Senate

A poll commissioned by WWF Australia which showed collapsing government support and a soaring Green Party vote in key marginal seats may also have contributed to Rudd's ousting. He's been replaced by Julia Gillard - Australia's first woman prime-minister.
Leading national daily newspaper, The Australian, made reference to “voter anger at the Prime Minister's decision to delay the emissions trading scheme (ETS)”, reporting that nearly two thirds of voters in the marginals surveyed supported an ETS while only a quarter opposed it – and nearly two thirds said it would affect the way they vote.

"We believe the Labor Party's backflip on the emissions trading scheme and its associated decline in the polls is a key reason we now have a new leader," said WWF-Australia CEO Greg Bourne.

"It is not surprising that support for an emissions trading scheme is still a key factor in voters minds, given it was a major platform for both major parties at the last election and both have since backflipped," said Kellie Caught, WWF-Australia's Climate Change Policy Manager

"What this poll makes clear is that taking serious action to reduce Australia's carbon pollution is a vote winner."

While Australians may have acted first, indications are that they are not alone. Two weeks ago, Stanford University released research showing a large majority of US citizens supported action on climate change, reinforcing similar findings from the UK.

Said Stanford Professor of communication, political science and psychology Jon A. Krosnick, who lead the research, “a huge majority shares a common vision of climate change”.

“This creates a unique opportunity for elected representatives to satisfy a lot of voters,” he concluded.

Australia’s new Prime Minister said after her election that she would make a priority of establishing a “community consensus for action”. If re-elected at the forthcoming elections, she said “ . . . I will re-prosecute the case for a carbon price at home and abroad”.
WWF today congratulated Julia Gillard on becoming the next Prime Minister of Australia and urged the new leader to recommit to an emissions trading scheme by, 2011.
“The party backflipped and now it is up to the new leader to right the wrongs and commit to an emissions trading scheme by 2011" , Mr Bourne said.
"Any attempt to just tinker around the edges with piecemeal action will not satisfy the Australian people that real action is being taken.

 
 

Source: WWF – World Wildlife Foundation International
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