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Response to comment on "Fairness considerations in global mitigation investments"
Shonali Pachauri1, Setu Pelz1, Christoph Bertram2
1International Institute for Applied Systems Analysis, Laxenburg, Austria.
Science (New York, N.Y.)
|May 18, 2023
Summary
This study examines regional climate mitigation investments, highlighting a North-South divide in funding capabilities. It analyzes how fairness considerations impact financing responsibilities for global climate goals.
Area of Science:
- Climate Change Economics
- Environmental Policy
- Sustainable Finance
Background:
- Global climate mitigation requires substantial investment between 2020-2030.
- Regional disparities exist in the capacity to finance these investments.
- Fairness considerations are crucial for equitable climate action.
Purpose of the Study:
- To analyze regional contributions to climate mitigation investments.
- To investigate the North-South divide in investment capabilities.
- To explore financing responsibilities based on fairness principles.
Main Methods:
- Utilizing estimates from the Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report (AR6).
- Incorporating data that reflects regional differences in technology costs.
- Considering both Purchasing Power Parity (PPP) and Market Exchange Rates (MERs).
Main Results:
- Sensitivity analysis reveals extreme distributions of regional contributions.
- The study supports the conclusion of a significant North-South divide in mitigation investment capabilities.
- Focuses on the proportion of regional investments to be financed internally.
Conclusions:
- Regional financing capabilities for climate mitigation investments are unevenly distributed.
- Fairness considerations are essential for determining internal financing obligations.
- Addressing the North-South divide is critical for achieving global climate targets.
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