World Bank proposes back-dated emissions payments

In its World Development Report 2010: Development and Climate Change, which it uses to advise international governments across industrialised nations, large companies also need to spend more on clean energy research and help poorer countries that have been more deeply affected by climate change.

It will table a proposal at the key UN Climate Change Summit in Copenhagen in December forcing companies from industrialised countries that have traditionally relied heavily on fossil fuels to pay for carbon emitted in the past, as well as carbon it continues to emit to operate its business now. It suggests a unified carbon price ­ so every company in every country will pay the same price per tonne.

Currently, prices per tonne vary by country and by trading system ­ for example, one price via the Carbon Reduction Commitment and another through the European Emissions Trading Scheme.

The Bank says global research and development investment needs to increase anywhere from $100m to $700m annually. With current investment at $13m from public funds and up to $60m from private funds, it seems business would have to pick up most of that tab.