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The Money Problem

It is without doubt that most countries around the world are heavily dependent on coal and oil for their energy supply. With the Kyoto Protocol coming into force and also the fact that oil is limited, the world must turn towards other energy sources, such as solar, wind, and nuclear energy. Unfortunately, it is costly for this transition. Each country must pay for the research and development of the technology, upgrade of technical skills, and the building of new energy suppliers (e.g. Windmills or nuclear plants).

In order for the Kyoto Protocol to go ahead, hundreds of billions of dollars is needed. Though this seems like a large amount, it is typically well under 1 percent of industrialised countries' economic output. The United States spend more than US$400 billion on military hardware and activities annually. Compared to this, the cost of Kyoto Protocol, which will have a far more positive effect, is worthwhile.

Tackling climate change will also reduce the threat of costly natural disasters. Floods, droughts and fires have been a major problem over the past few years. Disasters like Hurricane Katrina alone have been estimated to be up to US$200 billion. These types of effects are likely to become much more severe over time - money spent on preventative measures could save much in the long run.

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