Technology at the 4^th World Wilderness Congress

Our vision is to develop technology which can clean coal and gas fired plants at a cost that makes this commercially attractive. Given that coal still will play a central role in global energy supply throughout this century, we have to develop carbon capture and storage technology. Such technology is not only crucial for our climate. It will give us many other benefits locally and regionally, not least for public health, by reducing other harmful emission as well.

I believe that a prerequisite for developing the technology and disseminating its use, is establishing a carbon price. Or as Nicholas Stern puts it in his report: The first element of policy is carbon pricing”. “Putting a price on carbon, through tax, trading or regulation, means that people are faced with the full social costs of their actions”.

Only when the unit costs of reduction is lower than the price of emission will companies and their chief financial officers really demand investment in carbon capture and storage. But when the incentives are made to work. When we manage to adapt the market regulations. Then, we will see a great climate alliance between governments and the private sector. But there are obstacles to be overcome. There is skepticism in many countries about carbon storage, even in Germany.

The skepticism must be strong, because carbon capture today is not eligible for clean development mechanism status under the climate change convention. I believe that this can and will change when it becomes apparent how such projects not only help the climate, but also can generate a trillion dollar business. Such projects will transfer technology. They can lead to substantial financial flows to developing countries. From new and additional sources of finance, by engaging the private sector. In short there is a great potential in developing incentives for change and investment. To unleash this great potential, we must set a price on carbon, not only in Europe.

Greenhouse gases are externalities. Those who produce them are causing climate change Thereby imposing costs on the world and future generations. The most effective system would be a truly common global carbon market. That would reduce emissions and direct financial flows to developing countries.

Developing countries have a right to develop. Make no mistake, none of us should be asking developing countries to slow down their ascent towards prosperity. But they must be enabled to leap-frog the more polluting stages of development that many of us went through in the past. Today we see important countries setting targets for their energy-intensity.

Many countries, such as China, where investment are booming, are experiencing reduced energy intensity. Much of this improvement comes with new investments in technology developed in countries with carbon restrictions. I believe we must explore how we can accelerate also this process by harnessing new generations of incentives, by linking economic rewards to reduced energy intensity, both in countries and in sectors.

As we all know, short and medium term security of supply may be a forceful driver in this direction. Today, I believe we stand on the threshold of a new, green economy. A low-carbon economy. Which can rid the world of poverty and save the climate. We must move forward on a broad front. Improve energy efficiency, increase the use of renewables, improve agricultural and forestry practices, And focus on adaptation, in particular for the least developed countries and small island states.

The year 2007 will be critical. Germany has shown leadership at Heiligendamm. The G-8 torch is being passed to Japan for 2008 and we believe their leadership will be essential, and that this meeting and other meetings will help us in that process. At Bali we must come is together and hammer out a new mandate for new negotiations under the auspices of the UN and the convention.  This is where our collective focus must be. The Secretary-General is convening world leaders in New York on 24 September 1987. What we need at the New York High Level Event is a strong and positive signal for Bali and beyond. We all have a duty, all of us here and all other countries. Our generations will be measured, by how we stood up to this challenge.