Posted on July, 16 2001
The WWF reports show that claims by President George W Bush that reducing global warming pollution is economically harmful are misguided. The two reports, one focusing on Japan, and the other on the European Union, both say that implementing the Kyoto Protocol can benefit economic performance and stimulate industrial innovation, despite the US not participating in the treaty. For Japan, the report finds that proactive implementation of the Protocol by business, in ways that continue the industrial trends of recent years, could translate into a 0.9 per cent increase in gross domestic product (GDP), or around $47.3 billion. The European report concludes that unilateral implementation of the Kyoto Protocol by the EU could give its industries a head start in developing innovative technologies for reducing global warming pollution. The report says that an 'early' start with climate change policies could lead to substantial cost reductions for Europe in the future.
WWF believes that the conclusions of the reports underline the importance to Japan and the EU of seizing the opportunity of the Bonn climate summit that opens today to galvanise international support for Kyoto and put an end to the prevarication that has characterised the years of talks. "The findings are very clear - Japan and the EU should finalise and ratify the Kyoto Protocol because it will be an economic winner for them," said Jennifer Morgan, Director of WWF's Climate Change Campaign. "It will give Japan and the EU new opportunities in new markets. They can become world leaders in energy-efficient and clean, renewable energy technologies."
The authors of the Japanese report say that, "Japan could greatly benefit its own economy by going ahead with ratification of the Kyoto Protocol. It is hard to understand why Japan's government and industry should hold back." They also argue that Kyoto ratification could very well serve as an excellent springboard to break Japan out of its long economic slump. Other conclusions in their report are that most Asian countries and western Europe could benefit economically from spillover effects of Japan implementing Kyoto. The analysis projects GDP increasing by around $11.5 billion in South East Asia and India, and by $13.9 billion in western Europe. In contrast, the report concludes that the GDP of the United States could decrease by around $45.5 billion, or about 0.6 per cent, primarily as a result of its machinery industry not being driven to innovate.
The European report concludes that the EU could achieve between 85 and 95 per cent of its Kyoto target without harming the competitiveness of its economies, with smart policies being able to offset the remaining competitive impacts. Achieving its Kyoto target could cost the EU as little as 0.06 per cent of its gross domestic product in 2010 - a trifling amount for the budgets of the 15 EU nations - equivalent to around 3 billion Euros a year. Moreover, since climate protection policies also reduce other air pollutants, this would lead to financial savings on end-of-pipe technologies that reduce acid rain in Europe. Those savings could substantially cover the small cost to the EU of meeting Kyoto.
"In order to reduce greenhouse gas emissions, you have to innovate and come up with new technologies," said Professor Kornelis Blok, co-author of the EU report. "If the US does not ratify Kyoto and the EU and Japan do, they will gain a competitive advantage."
"WWF wants to see political leadership in Bonn that answers public concern over global warming," added Jennifer Morgan. "Governments have all the information they need to finalize the Kyoto Protocol. There is no excuse for further delay or for walking away from this treaty."
For further information:
Kyla Evans, Head of Press, WWF International. Tel: +41 22 364 9550
Andrew Kerr, Public Affairs Manager, WWF Climate Change Campaign. Tel: +31 6 5161 9462 (mobile)
Notes to editors:
Kyoto Without the U.S.: Costs and Benefits of Ratifying the Kyoto Protocol. Download the report in word format. Mirjam Harmelink, Dian Phylipsen, David de Jager and Kornelis Blok. ECOFYS Energy and Environment. The Netherland. Commissioned by WWF Climate Change Campaign, July 2001.
Will Ratification of the Kyoto Protocol Result in Economic Loss? Download the report in word format. Yasuhiro Murota and Kae Takase, Shonan Environmental Research Force, Shonan Econometrics Inc.. Tokyo. Commissioned by WWF Climate Change Campaign, July 2001
View the video news release: The Economics of Kyoto: Boom Not Bust