Silver Lining in Dark Economic Times

According to a new study by the International Energy Agency, greenhouse gas emissions fell by about 2.6 percent, the steepest drop in emissions in 40 years.

Fatih Birol, the Agency’s Chief Economist, told the Financial Times that the financial crisis will lead to a “surprising” and “significant decline” in greenhouse gas emissions this year. “We have a new situation, with the changes in energy demand and the postponement of many energy investments,” he said and added: “But this only has meaning if we can make use of this unique window of opportunity."

Falling industrial output is a big factor in the drop, but lack of financing for new coal-fired power plants has also played a role. Other factors include Europe’s effort to cut emissions by 20 percent by 2020, China’s energy efficiency policies and U.S. car emission standards.

This new data will be a major part of the discussions among world leaders at the climate change conference in Copenhagen this December.

“We hope that an agreement in Copenhagen would give a signal for new investments to go in [an environmentally] sustainable direction. If we miss this opportunity it will be much more expensive and harder than ever to bring the world’s energy system onto a sustainable path,” Birol stated.