So a historic deal has now been reached. This will bring us out of the recessional gloom and kick start the recovery for the whole global economy! Smiles aside, that does seem unlikely in the short term but maybe the $1 trillion set aside to help all countries will restore some confidence and point growth in the right direction.

It was disappointing to see so little being mentioned on the move towards a low carbon economy, however agreements of this scale are rarely that specific and the impending doom that the financial markets have managed to spread, clearly needs dealing with as a priority. According to the newspaper The Independent the deal centres around the following areas:

• Boosting the world economy
• Help for Ailing economies
• Cleaning up banks
• Increasing trade
• Opening tax havens
• Reforming of the IMF

The only significant mention on the greener technologies was:

“27. We agreed to make the best possible use of investment funded by fiscal stimulus programmes towards the goal of building a resilient, sustainable and green recovery. We will make the transition towards clean, innovative, resource efficient, low carbon technologies and infrastructure. We encourage the MDBs to contribute fully to achievement of this objective. We will identify and work together on further measures together to build sustainable economies.”

The Chinese will probably continue to build a power station a week, usually coal. More countries are likely to follow Obama’s lead in “greening growth”, however.

Sean O’Grady – The Independent 3rd April 2009

The real hope for this money making its way into the low carbon sector, rest on a meeting being held in summer along side the annual G8 meeting at Maddalena off Sardina’s coast. Largely the meeting has to be credited to the importance the new US president has put on tackling climate change.

As nations have so far mostly refused to discuss the specific amount of fiscal stimulus that will be set aside for the green sector. Countries are discussing widely differing amounts for the “green revolution” , according to HSBC currently of the UK total stimulus sits at $30.4 billion with just 7% going green. Does anyone else think more should be going to the largest growth area to get those green roots of recovery bursting through? China have earmarked 110 times as mush money for the purpose, how this sits with their current strategy of “pursue growth at all costs” regardless of human and environmental concerns leaves me personally with a raised eye brow. Hats off the South Koreans who are nobody’s fools with 81% of their $38.1 billion stimulus set for the low carbon sector. Getting the early adopter advantage in technology and experience in deployment of these solutions is literally worth its weigh in gold.

Lord Stern author of the report on climate change to the government suggests 20% go on the green economy. When this was tabled for the G20 not a single country supported the move, it was promptly shelved. I can personally think of a few tax breaks and additional monies set aside in technology funds used in expansion capital for smaller firms that would keep many jobs secure and create many more. Lets hope that at this conference in summer sets up the Copenhagen in December for the real breakthrough we are all hoping for. With all the hot air pouring out the G20 I feel they should at least offset some of this by buying some Brazilian rainforest and protecting it from harvesting of any sort.