Because “huge amounts” are needed to switch to CO₂-neutral energy production, a “new approach” is needed when looking for sources of financing, German Chancellor Olaf Scholz warns. He advocates relying more on private investments.
“A discussion that focuses only on public financing obligations falls far short. We need a new approach to financing climate protection worldwide,” the SPD politician said on Friday during the Petersberg Climate Dialogue in Berlin. “Public money alone, plus that of a manageable group of countries, will not, with the best will in the world, be sufficient for investments of this magnitude,” Scholz said.
Climate protection financing must be much more focused on enabling private investment in sustainable growth. This can be achieved, for example, if development banks secure investments in local currency or promote major projects together with private investors. The environment for private investment needs to be improved, with a clear focus on energy consumption.
“Don’t limit financing to a few industrialized countries”
The SPD politicians recognized the responsibility of the major industrialized countries to bear the brunt of reducing emissions of climate-damaging gases. However, he also stressed that financing for climate protection should not be limited to a few industrialized countries. Many so-called emerging countries have now become major CO₂ producers themselves with increasing economic power, while the share of industrialized countries in global emissions has fallen sharply.
The Petersberg Climate Dialogue, in which representatives from 40 countries are participating, is seen as an important milestone on the way to the climate conference in the Azerbaijani capital Baku at the end of this year.
Source: Krone
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