December 7, 2014

As at previous similar conventions, there is agreement on the overall goal, not on who should do what, when, and pay how much. Rather than repeating the entire list of disagreements, the following might become the basis for a possible compromise.

The overall goal is to reduce global greenhouse emissions. The current mindset is that each country is responsible for curbing a percentage of its emissions, and that rich nations must help poor nations with $100 billion annually by 2020. So far pledges to the Green Climate Fund amount to $10 billion, understandable since no one likes or wants to pay.

There’s nothing to prohibit one country from investing in another to reduce the 2nd country’s emissions. For example, China, the world’s largest emitter, could finance (as a loan, possibly even in Chinese currency) the installation of solar panels on each and every building in Lima, the host city. Gradually, following a well-designed plan, conventional power plants serving Lima would be taken off line. That would reduce Peru’s emissions. Simultaneously, also with Chinese funding, a plant to produce hydrogen by electrolysis of seawater (and chlorine, a byproduct) would be built. Emulating the successful Hawaiian model, excess electricity generated by Lima’s new solar panels would be used to power the plant.

Benefits for China
China would have the right to buy the hydrogen at a discounted price for a specified period of time, enough to amortize the loan. At the end of the period the price would revert to market price. Back home, China would use the hydrogen to generate electricity and produce pure water (a priceless byproduct) whether at planned or existing coal-fired power plants. Thus, China would get credit for reducing emissions in both countries, 100% in China and 50% in Lima, which would help it meet its greenhouse gases reduction goal/pledge. The additional electricity and water would help China maintain or expand its economic growth, a boon for the global economy.

Benefits for Peru
It would become an important exporter of hydrogen and chlorine, and since hydrogen is renewable its reserves would never run dry. It could invest the income from the sale of hydrogen to build yet more plants for domestic use. The new water would eventually compensate for the shrinking Andean glaciers, and it would save all those dollars currently being spent to buy fossil fuels for conventional plants.

Of course, the system can accommodate similar arrangements between other rich and poor nations.