British economist Nicholas Stern told international climate negotiators Thursday that government regulation and public money also will be needed to create incentives for private investment in industries that emit fewer greenhouse gases.
In short, a new industrial revolution is needed to move the world away from fossil fuels to low carbon growth, he said.
"It will be extremely exciting, dynamic and productive," said Stern, one of 18 experts in public finance on an advisory panel appointed by U.N. Secretary-General Ban Ki-moon.
A climate summit held in Copenhagen in December was determined to mobilize $100 billion a year by 2020 to help poor countries adapt to climate change and reduce emissions of carbon dioxide trapping the sun's heat. But the 120 world leaders who met in the Danish capital offered no ideas on how to raise that sum — $1 trillion every decade — prompting Ban to appoint his high-level advisory group.
The Copenhagen summit also resolved to mobilize a three-year emergency fund of $30 billion starting this year. It was unclear how much has been raised and disbursed so far.