A key element here would be the requirement for identifying and applying universally acceptable scientific standards and analytical methods for estimating carbon-equivalent emissions reductions. These would be used to certify for fund shareholders the reductions achieved and the unit cost of abatement. Participating utilities would propose energy efficiency projects in partnership with developing country utilities and the most promising projects for the development of energy efficiency infrastructure would be financed from the Fund. There is also scope to generate additional finance for the environment through efficient natural resource and product pricing and carefully targeted environmental charges and fees. Electricity tariffs set to reflect the real costs of production could generate revenues for sustainable development and environmental improvements.
Tropical forests provide global services as reserves of biodiversity and as carbon sinks.
In closing, let me say that sustainable development is about balancing economics, the environment, and social needs. In his fine book, Changing Course , Swiss entrepreneur and first Chairman of the Business Council for Sustainable Development, Stephan Schmidheiny, noted that it was difficult for political and business leaders to ask people living today to bear the costs of change for those not yet voting or acting in the marketplace. Currently, only 20 percent of the world's population enjoy the fruits of economic development. If the increase in human population, economic output and material flows follows traditional paths, hopes for environmental improvements and a sustainable world will be dashed. Assessing the environmental impacts of existing as well as of planned industrial facilities and mitigating them is in the companies' own interest and is a practical step towards achieving sustainability and a more secure economic growth.