Developing world aid may save top economies $3.6 billion

Kyodo

Major industrialized countries could save at least $3.6 billion (¥297 billion) over a five-year period under the Kyoto Protocol by launching greenhouse gas reduction projects in developing nations, a recently compiled U.N. report argues.

Private businesses in developed nations could save $2.3 billion and the public sector $1.3 billion from 2008-2012 under the Kyoto Protocol’s Clean Development Mechanism, the report said.

Japanese companies could reduce emissions costs by $150 million (¥12.4 billion) during the commitment period, according to the report, which was compiled by a body operating the mechanism.

The system allows industrialized economies to meet part of their emission reduction commitments under the Kyoto Protocol by receiving emission credits in return for investing in emission-cutting projects in developing nations.

The lower cost of such projects in less industrialized countries is considered a major incentive for developed nations to start using the mechanism, instead of trying to only reduce emissions in their own backyard.

The mechanism will also help to promote power generation via renewable energies and create jobs in developing countries, the report said.

The issue is expected to be the source of heated debate at the 18th U.N. climate change convention that starts Monday in Qatar, as developing countries oppose the mechanism’s use by major greenhouse gas-emitting nations that have rejected new reduction commitments from 2013 under the Kyoto Protocol.