The crash of banks in USA has had a domino effect, with economies worldwide taking a downturn. Every sector has gotten affected. The carbon market has escaped relatively unscathed. The prices have not experienced a dramatic fall and the market has been stable.
This is heartening news. The fight against climate change can not be stopped. And the financial crisis can not turn into an excuse to slide back emissions reductions goals. As governments tighten their belts, environment is usually the first sector which gets left behind in the scramble for limited federal funds.
EU leaders agreed last year to reduce emissions of greenhouse gases by 20 per cent in 2020 from 1990 levels. This is a laudable goal especially as EU countries are among the worst polluters in the world. To mitigate effects of climate change, global levels of greenhouse gases need to be reduced and the leading nations of the world such as the EU countries need to show the way in this.
To meet this goal however EU industries will need to show innovation and invest in cleaner technologies. In this age of financial credit freeze, it will be hard for companies to find the extra cash needed to implement carbon-capture and reduction technologies. But it is essential that industries continue exploring new options for funding and join governments in moving towards a green economy.
Mr. Barroso, the President of the European Commission, eloquently explained EU's role in fighting global warming in light of the financial market crash. Mr. Barroso said he can understand that in the difficult financial moments, governments become more defensive, but climate change does not disappear because of the financial crisis. He added that the EU should not be flexible in the objectives but it would be possible to show flexibility on how to achieve them.
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