Shipping Industry Ponders $100 Billion Green Climate Fund

cop 17 climate change durban

DURBAN, South Africa (Dow Jones)–The global shipping industry body said Tuesday it could consider contributing to a Green Climate Fund that aims to raise $100 billion for poorer nations, a fund being spearheaded by the United Nations climate unit.

“If governments decide that shipping should contribute to the UNFCCC ‘Green Climate Fund’, the industry can probably support this in principle,” said Peter Hinchliffe, the secretary general at the International Chamber of Shipping.

However, he stipulated that the details should be agreed at the International¬†Maritime¬†Organization, “with the industry’s clear preference for a Market Based Mechanism being a compensation fund linked to the fuel consumption of ships, rather than an emissions trading scheme.”

Country representatives started a two-week long climate meeting in Durban, South Africa Monday to try and for a deal on cutting carbon emissions after the current period of the Kyoto Protocol expires at the end of 2012.

At the top of the agenda is a Green Climate Fund which developing nations want the developed nations to contribute to, to help fund climate change adaptation and mitigation efforts in poorer countries.

The International Chamber of Shipping represents over 80% of the world merchant fleet.

The industrialized countries said they would like the private sector to contribute to the fund which the developing world is demanding the developed world pay for, accusing countries like the U.S. of causing the bulk of the environmental and human effects of carbon emissions.

-By Devon Maylie, Dow Jones Newswires