The Ever Growing Demands For Trillions Of Dollars Per Year To Fight Climate Change

Authored by Mike Shedlock via MishTalk.com,

Heads of state and various organizations gathered in Europe the past two weeks for climate change summits. Let’s discuss the demands.

Bonn Climate Conference

Image from United Nations press release

The Bonn Climate summit ended on June 15. On Thursday, June 22 and 23, another conference started in Paris, discussed below.

Call for New Global Financial System

France24 reports Paris summit aims to overhaul global financial system for ‘climate solidarity’ with South

Around 50 heads of state, along with representatives from international institutions and civil society, will attend a summit hosted by French President Emmanuel Macron on Thursday and Friday in Paris. Their objective is to develop a new global financial system so the most vulnerable countries will be better equipped to combat both poverty and climate change. 

The world’s wealthiest nations are demonstrating a “surge of solidarity” with those most vulnerable to climate change, said Cécile Duflot, president of the NGO Oxfam. Some 50 heads of state and government, representatives from international financial institutions, members of the private sector, climate experts and members of civil society will be attending the summit in Paris hosted by French President Emmanuel Macron on June 22 and 23. The objective of this ambitious conference is to “build a new contract between [the global] North and South”, according to the Élysée Palace.

Solidarity

13 political leaders – including Macron, US President Joe Biden, German Chancellor Olaf Scholz, British Prime Minister Rishi Sunak and Brazilian President Luiz Inacio Lula da Silva – wrote that they are “urgently working to fight poverty and inequalities” in a contribution to French daily newspaper Le Monde.

A Just and Inclusive Transition

Le Monde reports Biden, Macron, von der Leyen, Lula, and more: ‘We must prioritize a just and inclusive transition’

On the occasion of the Paris Summit for a new global financial pact, which opens on Thursday, 13 world leaders, including Rishi Sunak, Mia Mottley, Macky Sall and Olaf Scholz, affirm their commitment ‘to improving the well-being of people everywhere on the planet.’

We are urgently working to fight poverty and inequalities. An estimated 120 million people have been pushed into extreme poverty in the last three years and we are still far from achieving our United Nations Sustainable Development Goals by 2030. We should thus place people at the center of our strategy to increase human welfare everywhere on the globe.

We want a system that better addresses development needs and vulnerabilities, now heightened by climate risks, which could further weaken countries’ ability to eliminate poverty and achieve inclusive economic growth. Climate change will generate larger and more frequent disasters, and disproportionately affect the poorest, most vulnerable populations around the world. These challenges cross borders and pose existential risks to societies and economies.

Eurointelligence goes off the deep end with a claim “the case to financially support developing countries to develop green economies is easy to make.”

Whether you call it more solidarity with the South or the self-interest of the North, the case to financially support developing countries to develop green economies is easy to make.

Decarbonisation, biodiversity, and the fight against poverty are inextricably linked. A gathering with 50 heads of states alongside representatives from international institutions, private sector, and civil society will discuss how to adapt the IMF and the World Bank to today’s world. They will also discuss new financial resources, and how to deal with the plight of over-indebted countries. Last November, COP23 agreed to compensate for the effects of climate change on developing countries. But the money is not flowing just yet.

The Cost of Solidarity

• An expert group under the auspice of the UN estimates that investments have to reach the order of $1 trillion per year until 2030 to respond to the climate and biodiversity crisis.

• Oxfam estimated that $3.9 trillion per year will be needed over the same time period to fight poverty, inequality and climate change.

• The World bank estimated that it takes $4 trillion per year to build the infrastructure for this.

The cost of this “easy to make” vision is $1 trillion per year for the biodiversity crisis, plus $3.9 trillion per year to fight poverty and inequality, plus $4 trillion per year for the infrastructure. That’s a mere $8.9 million per per year until 2030, a 7-year cost of $62.3 trillion.

I assure you it will not stop there. How are we doing?

Money Not Flowing Yet, Fortunately

Eurointelligence notes that G7 countries considered reallocating $100 billion in special drawing rights to developing countries, but the measure is still blocked in the euro area.

“Developed countries also pledged 0.7% of their wealth in support, though the funds were only partially released. There will be discussions about new sources of financing, like new taxes. Ahead of the summit, the only consensus that could emerge is a tax on maritime transport that could yield $60-$80bn per year, according to the World Bank.”

Excuse me for pointing out Team Biden may have made this pledge but it is not constitutional. Precisely when did Congress pledge 0.7 percent of US wealth for this colossal boondoggle?

Eurointelligence moans “Rich countries are used to giving money mostly as loans, and only 26% of the committed climate funding are currently grants. This logic needs to change.”

Yes, the logic needs to change. Let’s start by throwing $62.3 trillion worth of climate demands straight into the ash bin of looney ideas.

Energy Policy Madness

In the US, Biden’s Energy Policy Mandates Cause Severe Shortage of Electrical Steel and Transformers

In California, California Utilities Seek to Charge People Based On Income, Not Energy Usage

Also in California, Oakland Teachers Strike in 5th Day Over Climate Justice, Homeless Housing, Reparations

Finally please consider Ford Gets a $9.2 Billion Cheap Government Loan With Inflationary Strings Attached

In response, a friend just pinged me with this comment: “This is colossally, stupid public policy. The government should not get involved in determining what is the best approach to electric vehicles. It should set standards and let the free enterprise system work it out.”

Unfortunately, it appears Biden pledged 0.7 percent of US wealth for global inequities.

Fortunately, the money isn’t flowing. But it would have if Democrats held the House, Senate, and White House.

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