If the euro debt crisis worsens it could grow the climate funding gap to US$45 billion by 2015 as governments struggle to maintain climate change investments due to austerity measures, according to an Ernst & Young report.
It is probable a gap of US$22.5 billion in investment in renewable energy, clean technology, pollution-cutting measures and subsidies will emerge in ten of the world’s major economies (Germany, France, Britain, Australia, Spain, Italy, Japan, the United States, South Africa and South Korea) by the year 2015.
The report forecasts that Germany would face the largest funding gap in absolute terms of $8.3 billion, while current austerity measures would mean the climate funding gap would be worst in Spain, Britain and France.
Juan Costa Climent, Ernst & Young’s global climate change and sustainability services leader said that “continuing economic uncertainty is pushing a low carbon economy further out of reach.”
The report comes ahead of a U.N. climate summit starting on November 28 in Durban, South Africa, where negotiators will work on a new global climate deal.
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