ROME, Sept 16 (Askume) – Bank of Italy Governor Fabio Panetta on Monday reiterated his emphasis on a plan to help poor countries cut carbon emissions, saying this would ultimately reduce the overall cost of the energy transition.
Panetta, who is also a member of the ECB’s governing council, said net flows into sustainable investment funds have slowed and some countries are facing “political resistance” to climate initiatives.
Developing countries are facing increasing difficulties in raising the money needed to phase out cheap coal-fired power plants and shift to clean energy, and financing has long been one of the most contentious issues at the UN climate talks that will be held in Baku in November.
“The cost of financing transformation projects in emerging market and developing economies (EMDEs) can be twice as high as in advanced economies,” Panetta said at the G7 International Energy Association (IEA) meeting in Rome.
He supports a scheme that would allow countries with high per-capita emissions to compensate countries with relatively low emissions.
“The resources diverted to this would more than compensate for the economic losses caused by climate change that they will suffer if transition efforts fail,” he said.
Prime Minister Giorgia Meloni’s government pledged in January to support efforts by developing countries, particularly in Africa, to grow their economies by introducing low-carbon technologies.
