THE proposed $100bn-a-year Green Climate Fund is not enough to address climate change mitigation and most of it should rather be spent on adaptation measures where more value can be obtained from the funds, Dennis Welch, executive vice-president and chief administrative officer of American Electric Power, said on Monday.
The structure and operating mechanisms of the proposed $100bn-a-year fund are being negotiated at the COP-17 climate change conference in Durban.
The aim of the fund is to provide finance for developing countries for climate change adaptation and mitigation projects, although much uncertainty surrounds the outcome of the negotiations at this stage.
American Electric Power is one of the US’s biggest power utilities and the largest operator of coal-fired power plants in that country. The $100bn was "woefully short" from the perspective of businesses having to invest in new power technologies, Mr Welch said at a business sector event being held alongside the COP-17 conference.
Dick Jones, of the International Energy Agency, said "no matter what we get out of the Green Climate Fund ... it is not going to be enough. We need to be able to mobilise domestic investors in developing countries."
Siemens sustainability director Kersten-Karl Bath said the fund should be viewed as a catalyst for private sector investment.
Mr Welch said there needed to be a mechanism that guaranteed a return for business when investing in climate change projects, and he cited projects undertaken by American Electric Power that required millions of dollars to establish, where the government authorities involved had walked away from commitments.
