What did Hillary's $100B offer at COP15 mean?

(Photo of Clinton with U.S. negotiator Todd Stern at COP15 from Flickr and photographer Andy Revkin)

When I woke up this morning to the news that Hillary Clinton had announced in Copenhagen that the U.S. would raise $100 billion a year for poor countries to fight and adapt to climate change, I was amazed that Barack Obama hadn’t saved such big news for his speech tomorrow.

Here’s what she said, when she arrived last night, or was it this morning? The half-day time difference really throws me.

“The United States is prepared to work with other countries toward a goal of jointly mobilizing $100 billion a year by 2020 to address climate change needs of developing countries.”

A lot of qualifying terms there: work with others, toward a goal, jointly mobilizing…. It wasn’t exactly a declaration that the U.S. government, perhaps with bonus money thrown in by Goldman Sachs, Citigroup and other Wall Street fat cats (and maybe some help from Mr. Bill’s Foundation connections) would put up all the money.

As I began to parse the language and read more reports, some things became clearer – i.e. that she was sent to offer a carrot to African and other very poor nations to use a stick on China and India to allow their emission cuts to be monitored.

She noted such a fund was only for the poorest countries (i.e. not China) and it depended on a climate agreement including verifiable commitments to cut emissions or carbon intensity (i.e. China).

Other things became less clear – i.e. how much of the $100B will come from the U.S.? How much public and how much private? Will the billions already pledged by Japan, the EU and others for the next three years be part of that fund? Are we simply echoing a pledge by Europe to help set up a worldwide $100 billion fund for the long term?

According to U.S. Rep. Ed Markey (D-Mass.), the pending climate bill here contains $5B a year in proceeds from auctioning cap-and-trade allowances that would go to developing countries. Others are suggesting some of the money could come from $60B in annual subsidies for fossil fuels.

Whatever the case, response by other countries and environmentalists is positive and seen as perhaps the “breakthrough” the climate talks needed to avoid a failed conference. It suggests a long-term commitment by the U.S.
This may be the only way Obama can “lead,” given the stinginess of the Congress in committing to cut emissions.

Although poor countries say they need much, much more than $100 billion as droughts ravage some countries and rising seas threaten to obliterate others, their point person at the conference, Prime Minister Meles Zenawi of Ethiopia, acknowledged they would accept $30B in the short term, $50B by 2015 and $100B by 2020.

Some of this money would help avoid deforestation, which causes about 20% of the world’s greenhouse gases. (Did you know the world is losing an acre of forest every second? I read that in Al Gore’s new book, “Our Choice.”)

An agreement to pay countries to avoid clearing their forests for agriculture has been one of the more likely outcomes of this conference.

World leaders are starting to arrive. We’ll see what the coming day brings (it’s already getting to be evening Thursday in Copenhagen).

(Sources: Sierra Club, Greenwire, Washington Post, LA Times, climateprogress.org)

Time is running out; deal or no deal for climate agreement at Copenhagen this week

(Photo of session at COP15 from Flickr and UN Climate Talks)

It’s hard enough to get 60 Democrat and Independent senators to agree on a health reform bill. Negotiations just seem to boil it down to the lowest level.

But try negotiating with 15,000 delegates from nearly 200 countries. That’s what’s been going on in Copenhagen the past 9 days. Small wonder they haven’t come up with much.

The poor countries want the rich countries, which caused the problem, to be much more aggressive about cutting emissions and to put up about $500 billion a year to save them from climate change.

And the rich countries want the big emerging economies with significant emissions, like China and India, to be accountable to the rest of the world for their planned cuts in carbon intensity (emissions wouldn't grow as fast as the economy.)

After a week of posturing and casting blame (and a half-day walkout by African and other developing countries), not much has been decided.

Now the top environment ministers and celebrities have arrived. Al Gore, Arnold Schwarzenegger, Prince Charles and N.Y. Mayor Michael Bloomberg gave them a pep talk and the ministers settled in to try to resolve some things before more than 100 heads of state arrive later this week for the conclusion of the much-touted climate treaty conference, COP15. President Obama will address the group Friday.

U.N. Secretary-General Ban Yi-Moon arrived, saying, ”Time is running out. There’s no room for posturing and blaming.”

What now?
Will anything come of this conference? There are only 3 days left.

Despite the discord, some environmental leaders think there may be success. A great deal of advance work was done by the U.S., China and India in the past weeks, with their leaders making specific pledges to curb emissions.

One question is whether Obama will be emboldened to up the ante on his original pledge of 17% (over 2005 levels) by 2020, which is only about 3% over the usual baseline 1990. He now has the EPA’s endangerment finding which allows the administration to regulate greenhouse gases under the Clean Air Act, as well as a bipartisan “blueprint” for a Senate bill that would meet the House target of 17%. Our offer is pretty pathetic compared with Europe’s and Japan’s. But does he dare roil up a prickly Senate which has yet to pass any climate bill and would have to ratify any international treaty by (omigod) 67 votes. Probably not.

Another question is will China eventually give in and let others monitor its pledged 40-45% drop in intensity.

Funding for poor nations
A third major area to be resolved is how much the rich countries will put up to fund mitigation and adaptation in poor countries. The mitigation helps us all, by keeping GHG out of the air. The adaptation helps poor countries that are already hurting from the climate change that some say doesn’t exist. (Maybe someone from a disappearing island nation will throw a sandal at wacko Sen. James Inhofe, who plans to show up.)

The European Commission, before the conference began, offered $10.8 billion a year for the next 3 years. Japan just agreed to put in $10B a year. The U.S. apparently has offered $1B next year, to be followed by $2B in 2011 and 2012. We’ve also offered to put $85 million a year for 5 years into a clean energy development fund for these nations.

This is not nearly enough, say the developing countries. They want half a trillion. So how much is really needed? Of course it’s impossible to say. But British economist Nicholas Stern said $100B a year by 2020, then double that amount in the following decade. The EU estimated $147B a year by 2020. And the UN is calling for more than $500B a year.

Of course if we did more to curb emissions sooner, we wouldn’t have to spend so much on adaptation. And conversely, if we end up with a weak deal, or no deal at all, it will cost much, much more – we’ll all need adaptation funds.

(Sources: E&E News PM, ClimateWire, BBC, E&E TV, Huffington Post, Reuters PlanetArk)