Let's be real: ITIF says climate change strategy requires huge investment
In stark contrast to a new report claiming no new investments are needed to curb climate change, the Information Technology and Innovation Foundation (ITIF) says that any realistic climate strategy requires massive investments in clean technology.
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Ahead of the UN climate summit in Paris, ITIF is calling on UN climate negotiators to commit significant new resources to research and development initiatives that spur innovation in clean energy. The only realistic way to reach zero carbon emissions is to accelerate breakthrough technologies that can replace fossil fuels, and achieving that goal will require a global effort to ramp up research and development to at least $100 billion per year, ITIF claims.
"It is wishful thinking to believe that the kind of voluntary commitments countries are likely to make in Paris will have a significant impact on the growth of greenhouse emissions," said ITIF founder and President Robert D. Atkinson. "The world won't be able to mitigate the effects of climate change without much more affordable and effective clean energy technologies that break fossil fuels' grip on the global economy. Unfortunately, we are significantly underinvesting in the research and development we need to bring these advancements out of the lab and into our homes and businesses at competitive prices."
ITIF launched a "$100 Billion Campaign" earlier this year to educate policymakers about the need for far greater investment and how clean energy innovation should be a key pillar of global climate policy. The campaign urges negotiators from all developed and emerging economies to commit to increasing public investments in clean energy innovation to at least 0.15 percent of their respective GDPs annually, which would total $100 billion a year globally.
Other leading organizations, including the Intergovernmental Panel on Climate Change and the International Energy Agency, also support the need for at least $100 billion per year in clean technology research to address climate change.
"Right now, we are investing less than 25 percent of what is needed to get the job done when it comes to slowing climate change," Atkinson said. "Without increased investment in clean energy innovation, it will be practically impossible to adopt clean energy at the pace and extent needed to reach near-zero carbon emissions during this century. At its core, climate change is a technology problem, so we need a technology solution. But we won't get there without enough worldwide investment."
The $8.1 billion Climate Investment Funds (CIF) also support catalyzing clean technology transformations and improvements to increase innovative use of funding for climate action.
Last week, they endorsed $205 million to support renewable energy expansion in some of the poorest countries of the world -- Bangladesh, Mongolia, Rwanda, and Uganda -- to increase electricity access, enhance energy security, reduce poverty, and mitigate climate change. This brings the CIF's total allocations for renewable energy development in 40 countries to more than $5 billion.
Bangladesh, Mongolia, Rwanda, and Uganda are all celebrating the endorsement of their investment plans under the Scaling Up Renewable Energy in Low Income Countries Program (SREP), a $796 million funding window of the CIF that works to demonstrate the economic, social, and environmental viability of renewable energy in 27 low income countries. Each plan is uniquely focused on the countries' specific circumstances and builds upon national plans and priorities.
These four countries, as well as other CIF countries and the wider global community, look to the CIF's $5.3 billion Clean Technology Fund (CTF) for examples of successful practices on financing low carbon technologies to expand markets for renewable energy, energy efficiency, and clean transport.
"When stakeholders see results like this, the risk perception is lowered and the money begins to flow into the clean technology sector. We in the public sector must do our part to attract the private sector and drive investment. We have to be innovative and strategic to get the most out of precious public resources," said Mafalda Duarte, CIF program manager. "This funding gap threatens some recipient countries' momentum, but it also presents an opportunity to donors to demonstrate a shared ambition in achieving a low carbon future. The CTF -- and the CIF as a whole -- is tried, tested and trusted, and delivering results at scale."
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