Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

INTERVIEW-Climate means new business, not trade war-US envoy

Published 08/14/2009, 05:40 AM
Updated 08/14/2009, 05:42 AM

* Trade war "implausible" after climate pact-Pershing

* New green businesses to outnumber industries suffering

By Alister Doyle, Environment Correspondent

BONN, Germany, Aug 14 (Reuters) - Trade wars after a planned U.N. climate deal are implausible, partly because of a surge of new business opportunities creating jobs in clean energy, the head of the U.S. delegation at U.N. climate talks said.

Jonathan Pershing also told Reuters that Washington would be able to agree a new U.N. pact to combat global warming, due to be approved in December in Copenhagen, even if the U.S. Congress has not approved new U.S. legislation by then.

He dismissed developing nations' worries that there could be trade wars. Many poor nations fear that rich nations will set up import barriers to protect domestic industries facing higher energy bills under a U.N. deal restricting fossil fuel use.

"I think there will be questions about whether other countries are adequately acting," Pershing told Reuters on the sidelines of the week-long 180-nation talks ending on Friday.

"And there's going to be a question about competitiveness. But I wouldn't think there will be a trade war. It doesn't seem plausible," he said. Pershing is deputy special envoy for climate change.

"One of the things I am struck by is that there is an increasingly large industrial sector that wins on these issues and frankly a somewhat decreasingly large sector that loses," he said. "That's actually not a bad trend to be on for optimism over the long term."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"If you look at the Nasdaq indices and see which companies are doing well, it's not the old 1990s high tech sector. It has been replaced by the new 2000s high tech sector which is the new energy high tech," he said.

CARS, ETHANOL

He said there were big opportunities for companies ranging from cleaner vehicles to cellulosic ethanol. "The demand is huge," he said.

But he added there were "real concerns" in sectors such as steel, where U.S. producers fear a flood of imports from countries such as China where energy costs could be lower if the U.S. restricts carbon emissions.

"My sense is that the concerns are about whether or not all countries will have a level field," he said.

"The solution is to provide commitments and for China to take those on," he said. China has recently overtaken the United States as the top greenhouse gas emitter and says that rich nations have to take the lead with big cuts in emissions.

U.S. President Barack Obama wants to cut U.S. emissions back to 1990 levels by 2020 and then by 80 percent below 1990 levels by 2050 as part of a global deal to limit climate changes such as floods, desertification, more powerful storms and rising ocean levels.

The U.S. House of Representatives passed a carbon cutting bill in June but the Senate has yet to act. If the Senate approves its own bill, the two differing texts would have to be reconciled to make them identical and be voted on again.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"It's possible it could still happen (before Copenhagen). Most people I talk to to think it's more likely that these two pieces will be done but that the reconciliation will not be," he said.

"It will affect (the U.S. position in Copenhagen). The further along we are, the more explicit we can be. But it would not preclude us from doing an agreement," he said. -- For Reuters latest environment blogs click on: http://blogs.reuters.com/environment/ (Editing by Tim Pearce)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.