ECONOMY, CAP&TRADE CUT EMISSIONS

Financial crisis driving down emissions: report
Shane MacLeod, September 21, 2009 (Australian Broadcasting Company News)

"New figures suggest the economic downturn has led to the biggest fall in carbon emissions in more than three decades…But although the economic downturn is driving down emissions, the figures suggest that carbon trading schemes - like those in the European Union - are also contributing to the decline.

"With the developed world's reliance on fossil fuels, there is a well-known link between economic activity and carbon pollution…A global summary being prepared by the International Energy Agency (IEA) suggests it has been a substantial decline…"

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"The scale of the fall will not be revealed until later this month, but reports suggest it is an unprecedented amount, bigger even than the decline in carbon emissions that accompanied the world's last major recession in the early 1980s…But it has not been entirely due to reduced economic activity. The agency estimates about a quarter of the reduction it has identified is the result of regulation…"

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"The IEA's chief economist says the figures show it is much less difficult for the world to achieve the reductions in carbon emissions that scientists are saying will be needed…[I]t is also evidence that the way of doing that is to disconnect economic growth from fossil fuels…

"The report suggests that the shelving of coal-fired power stations is having an impact as well…[But] if the global economy comes out of the current downturn, there will be a rapid acceleration in carbon emissions…The IEA's report will be released just ahead of the next round of global climate negotiations in Bangkok at the end of the month."