Financing ‘energy localism’, how does legal structure matter?

The message from the energy prices summit last October was only “check, switch and insulate”. Why not “generate”? Amid the threats of soaring energy prices and global climate change, it gives us every reason to go ahead with ‘energy localism’ – community sustainable energy projects – which can fuel local green growth. Unless you are lucky enough to have a hidden goldmine in your community, it is often the financiers, not the business angels, who can give an energy project green light.  

Decoding Durban: Deal or no Deal? Deal, for a Deal Later (Part 4)

The road to Qatar and beyond

We are now on a ‘climate mortgage’ to borrow from our future generations. The Kyoto Protocol adopted in 1990s was just the ‘deposit’. Kyoto II is an ‘instalment’ long overdue and the Durban deal is only part of it. The lack of quantitative emissions reduction targets year after year means that our ‘mortgage’ now is subject to ‘penalty’ or a higher ‘interest rate’ equivalent to 1-2% of the world’s GDP this year rising to 19% in 2030 (according to the EU’s report – “The Economics of Climate Change Adaptation in EU Coastal Areas”). The Durban deal this year left a lot of questions, including the extent of emissions reductions in the Kyoto Protocol’s extension period as well as the specific amounts and operation management of the Green Climate Fund, unanswered. There are, hence, numerous uncertainties looming over the carbon market and forest protection financing that are the world’s main drivers to a low-carbon economy.