APEC finance ministers urge action on climate change

COOLUM – APEC finance ministers Friday said the world needs to “go beyond” the Kyoto Protocol to adequately address climate change and warned a rise in protectionist sentiment could threaten growth and living standards.

The 21 finance ministers also called for action to address “imbalances” in the global economy as they wrapped up a two-day Asia Pacific Economic Cooperation (APEC) meeting in the north Australian town of Coolum. The APEC ministers, who represent countries with a third of the world’s population, said in a communique that they recognised the need for “strong and early action” on climate change without damaging economic growth.”We considered the global architecture for addressing climate change and shared the view that it is important to establish an effective framework beyond the Kyoto Protocol under the UN climate change process,” it said.The Kyoto Protocol, the landmark environmental treaty negotiated in Japan’s ancient capital, mandates cuts in the greenhouse gases blamed for global warming.It expires in 2012.Australia and the United States have refused to ratify the 1997 treaty, arguing it is unfair as it does not include emerging economies such as China and India.Australian Prime Minister John Howard, a former climate change sceptic, has flagged the issue as a major agenda item at the APEC Leaders Week in Sydney in September.His Treasurer Peter Costello hailed as a major milestone the consensus among the diverse APEC economies that climate change action needed to go beyond Kyoto and must address the issues of economic growth and energy security, as well as the environment.”It was a breakthrough to get this up on the agenda; it was a breakthrough to deal with it by marrying it to the environment, the economy and energy,” he told reporters.Costello said he was particularly encouraged by expressions of support from China for the adoption of market-based solutions to the problem such as a carbon emissions trading scheme.”I’ve never heard that before (from the Chinese),” he said.APEC’s finance ministers also expressed support for World Trade Organisation efforts to secure an agreement on removing global trade barriers but warned of a rise in protectionist sentiment.”We regard a rise in protectionist trade and investment sentiment around the globe as a serious threat to growth and living standards,” they said in the communique.The ministers said ensuring flexible exchange rates would help dampen the increase in protectionism, as well as reducing imbalances in global trade and investment flows.”In the APEC region, this requires efforts to increase national savings in the United States, strengthen consumption in China, continue structural reform efforts including fiscal consolidation in Japan, and encourage domestic investment in much of emerging Asia,” they said.Costello said the meeting, which will make policy recommendations ahead of the APEC leaders conference, was held in a friendly, informal atmosphere of cooperation.”I believe that we have advanced the APEC agenda very significantly in the course of this meeting …in energy security, in environment, in economic growth, in capital markets, in financing and in relation to trade.”Nampa-AFPThe APEC ministers, who represent countries with a third of the world’s population, said in a communique that they recognised the need for “strong and early action” on climate change without damaging economic growth.”We considered the global architecture for addressing climate change and shared the view that it is important to establish an effective framework beyond the Kyoto Protocol under the UN climate change process,” it said.The Kyoto Protocol, the landmark environmental treaty negotiated in Japan’s ancient capital, mandates cuts in the greenhouse gases blamed for global warming.It expires in 2012.Australia and the United States have refused to ratify the 1997 treaty, arguing it is unfair as it does not include emerging economies such as China and India.Australian Prime Minister John Howard, a former climate change sceptic, has flagged the issue as a major agenda item at the APEC Leaders Week in Sydney in September.His Treasurer Peter Costello hailed as a major milestone the consensus among the diverse APEC economies that climate change action needed to go beyond Kyoto and must address the issues of economic growth and energy security, as well as the environment.”It was a breakthrough to get this up on the agenda; it was a breakthrough to deal with it by marrying it to the environment, the economy and energy,” he told reporters.Costello said he was particularly encouraged by expressions of support from China for the adoption of market-based solutions to the problem such as a carbon emissions trading scheme.”I’ve never heard that before (from the Chinese),” he said.APEC’s finance ministers also expressed support for World Trade Organisation efforts to secure an agreement on removing global trade barriers but warned of a rise in protectionist sentiment.”We regard a rise in protectionist trade and investment sentiment around the globe as a serious threat to growth and living standards,” they said in the communique.The ministers said ensuring flexible exchange rates would help dampen the increase in protectionism, as well as reducing imbalances in global trade and investment flows.”In the APEC region, this requires efforts to increase national savings in the United States, strengthen consumption in China, continue structural reform efforts including fiscal consolidation in Japan, and encourage domestic investment in much of emerging Asia,” they said.Costello said the meeting, which will make policy recommendations ahead of the APEC leaders conference, was held in a friendly, informal atmosphere of cooperation.”I believe that we have advanced the APEC agenda very significantly in the course of this meeting …in energy security, in environment, in economic growth, in capital markets, in financing and in relation to trade.”Nampa-AFP