Treasury Undersecretary for International Affairs, David McCormick, said that it may cost developing countries an additional $30 billion to transition from the dirty fuels of the past to cleaner technologies that cut emissions, and this fund will help bridge that gap. Emerging economies like China and India will be the beneficiaries.
The fund will also help stimulate private sector capital by making clean energy projects more attractive to investors and encouraging supportive government policies. McCormick pointed out that it’s in the U.S.’s national interest to help China address global warming and that the Bush administration is using a “strategic economic dialogue” with Beijing to accomplish that.
While the U.S. will be a primary donor, other nations may contribute to the fund, which should be in place later this year. It’s part of a broader plan to bring developing nations into a framework to limit global warming emissions.
United Nations climate chief Yvo de Boer said this about the cleantech fund:
This clean technology fund is perhaps a Marshall Plan on climate change beginning to emerge where we stop worrying about the short term woes and focus much more on taking a bold step forward … towards a clean future.
Does it make sense for the U.S. to be pouring billions into other nations, when we have so far to go here at home? Or does a rising tide lift all ships?