London should be the clearinghouse as private investors provide at least half the funding needed to fight global warming in developing nations, U.K. Climate Change Minister Greg Barker said.
“It’s likely that at least half, if not considerably more” of the $100 billion a year that will be required to fund new infrastructure and cleaner sources of energy will come from private financing, Barker said today in an interview before his speech at the London Stock Exchange.
While more than 190 envoys failed at last year’s climate talks in Copenhagen to agree on a climate change treaty, developed countries committed to pay as much as $100 million a year by 2020 in aid to poorer countries to help tackle the global warming. Representatives of Morgan Stanley and Deutsche Bank AG are scheduled to speak at the London Stock Exchange today on obstacles to cleaner energy.
The private sector will drive in investments in clean- energy technologies, while there will be a “stronger role of public sector finance for adaptation measures such as flood defenses and related projects, said Barker, a member of the Conservative Party. He previously worked in financial public relations, including a role as head of international investor relations at Sibneft, Russia’s fifth largest oil producer.
‘‘We need to make sure that we get the policy framework right in order to unlock large-scale private investment for clean technologies,’’ said Justine Greening, economic secretary to the U.K. government’s treasury.
Strong Governance, Transparency
About $1 trillion a year will be needed by 2030 to reduce global greenhouse gas emissions, according to the International Energy Agency. The U.K. has committed to cut its carbon-dioxide emissions by 80 percent below 1990 levels by 2050. CO2 is a greenhouse gas blamed for causing climate change.
Investments in the clean-energy sector more than doubled to $162 billion in the four years through to 2009, according to the U.K. government.
‘‘We need to encourage greater dialog between policy makers in governments of developing nations and key capital market players,’’ Barker said. Developing nations need to show ‘‘strong governance and transparency’’ to help attract investment from the private sector, he said.