New Mechanisms for Financing Climate Change Mitigation
There has been a long-standing perception among policy makers and the general public that the goals of economic growth, environmental protection, national security, and reduced fossil fuel use involves a complex set of trade-offs that pits one goal against the other. This perception is reflected in the ongoing UNFCCC negotiations, which though moving forward at a modest pace, have polarized the different stakeholder groups.
Under a collaboration with WWF, MI has expanded its Threshold 21 China (T21-China) model to examine ways to reduce greenhouse gas emissions from the cement and iron and steel industries through use of current and new technologies.
China is the world’s largest producer of cement and crude steel, accounting for 50 percent and 36 percent of global production of cement and crude steel respectively. However, because of technologically obsolete and energy inefficient plants, CO2 emissions from the cement and steel production alone account for 15 to 20 percent and for 10 percent of China’s emissions respectively.
To inform the UNFCCC negotiations, WWF commissioned a study that examines options for a Global Finance Mechanism (GFM) and the specific institutional arrangements to make it operational. The collaboration with MI is part of this initiative.
The preliminary findings of the study can be downloaded here.