Financing Emissions Reduction in Asia: Policy Options and Constraints
Climate change due to emissions from fast growing developing economies of Asia is sounding an alarm bell for policymakers not only in Asia, but also in the world. This situation raises the urgent need for undertaking measures to control emissions with due consideration of the prevailing socio-economic situation specific to Asia, which still houses large proportions of the poor. Without appropriate price signals, emerging Asia may not trigger technological innovation and leverage private investments towards emissions reductions. Increased public and private financial resources are necessary to fill the gap between the 'business as usual' and low carbon emission scenarios, to work out possible solutions and addressing the capacity barriers, which may exist at different levels. ODA from regionally and financially sound countries such as Japan and China can be an important mechanism for regional and international cooperation, especially where there is a shortage of private investment. In order to establish a green economy, based on low-carbon use and increased human welfare, it is necessary to have a core set of indicators that can be used to measure the progress of a country transiting to a low carbon economy.
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