G20 Pittsburgh summit

Green growth on the back burner

by Brent Gregston

Article published on the 2009-09-20 Latest update 2009-09-20 15:51 TU

Pittsburgh in the 19th century - the city hopes to replace its depleted heavy industry through the green economy
(Credit: Mr Kilbert and "Tarbell" - possibly Edmund N. Tarbell)

Rich and poor countries now appear to be further apart than ever on the issue of climate change despite the new commitment brought to the issue by US President Barack Obama. But, far from being at the heart of the Pittsburgh summit, climate change may be an afterthought.

The leaders in Pittsburgh are under some pressure to build momentum towards a new treaty on climate change that will be drafted at a UN meeting in Copenhagen in December.

Help for developing nations

European heads of state and government held a summit in Brussels aimed at forging a joint position ahead of the G20? They now look set to press for the US and other rich nations to help provide five billion euros of "fast-start" money next year to help poor nations tackle climate change.

"It's time for a wake-up call to world leaders on climate," said Swedish Prime Minister Fredrick Reinfeldt, who presided over the summit.

"The climate is changing much faster than expected," EU governments agreed in their statement. "The risks posed by climate change are real and can already be seen. The G20 should recognise the need to fast-start international public support for addressing urgent climate financing needs in developing countries."

The European Commission estimates that developing countries will need five to seven billion euros annually up until 2012.

After that, the commission envisions a long-term "financial architecture" to combat climate change that could be crafted at the upcoming UN climate conference in Copenhagen.

Developing nations will need as much as 100 billion euros per year to cope with climate change by 2020, according to the commission.

"We really need to step up, stop the acting and start delivering action. The negotiations are going too slowly,” said Reinfeldt.

The US and non-EU members of the G20 have not signed off on the deal. 

Low-carbon growth

Low-carbon growth could be seen as one of the best ways out of the recession - it promises more jobs and more opportunities for innovation than business as usual.

A new study by the University of Massachusetts-Amherst in the US shows that investing in the “green economy” creates nearly four times as many jobs as traditional investment.

Which begs the question: How much of the vast sums of money spent on pumping up the global economy are being spent on a green new deal rather than high-carbon growth?

The need for a green recovery only makes the 27th and 28th paragraphs of the 29-paragraph declaration released at the end of the London G20 summit.