Dirty business

Building low-carbon economies is an important part of any strategy to combat climate change and a relaxed cap on CO2 undercuts the Kyoto protocol. But some countries dispute this.

Global efforts to combat climate change may be in for some reverses, going by Germany’s decision to cut carbon emissions by business by less than 1 per cent by 2012 and give free emission permits to industry. That even this limit will not apply to new power plants for the next 15 years puts a question mark on Germany’s credentials as one of Europe’s most successful countries in cutting greenhouse gas emissions (GHGs).

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The German government has apparently allowed environmental concerns to be held to ransom by power firms that have threatened not to invest in new plants unless they are given liberal carbon emission permits. This will have a negative impact on crucial investment in clean technology, as other countries begin demanding parity in carbon permits with their German counterparts.

Building low-carbon economies is an important part of any strategy to combat climate change and a relaxed cap on CO2 undercuts the Kyoto protocol. But some countries dispute this. The US contends that the treaty is ‘lopsided’ as it doesn’t require developing countries to reduce pollution the way developed countries must. Washington still favours buying ‘carbon credits’.

Latest evidence suggests that American car-makers emit even more CO2 than the biggest electric utility there, and their number is rising. Yet, Washington continues to hold SUVs to the same pollution standards as smaller cars. As long as a country like the US -- with the greatest CO2 output and the most inefficient energy industry -- continues to avoid any domestic action, battling climate change will remain a tall order.