By Citizen Correspondent

Increased cross-border capital flows and technology transfer in low-carbon business to Tanzania and other developing countries can significantly contribute to global efforts to combat climate change.

This has been said by the vice president of the World Association of Investment Promotion Agencies (WAIPA), Mr Emmanuel Ole-Naiko. He was speaking during the launch of the World Investment Report 2010 in Dar es Salaam on Thursday. 

He said this can be achieved if transnational corporations (TNCs) introduce efficient technologies that facilitate low carbon emission in the production processes.

He told invited guests that TNCs can further contribute to low-carbon economies through low-carbon foreign direct investments (FDI). They can also facilitate the expansion and upgrading of poor countries’ productive capacities and export competitiveness, he noted.

 Mr Naiko, who is also the executive director of the Tanzania Investment Centre (TIC), remarked: “The global public debate on tackling climate change is no longer about whether to take action or not.  It is now about how to make action needed to be taken and by who.”

Called “Investing in a Low Carbon Economy,” the report said global FDI inflows fell by 37 per cent to $1.11 trillion in 2009 after falling 16 per cent in 2008. But they will be steady this year and rise further in 2011-12 as cross-border mergers by multinational companies pick up on growing business confidence, he said.

Mr Naiko explained that the current global warming makes TNCs’ obligation towards shifting to the low carbon economy mandatory. This is not only because they are responsible for higher carbon emissions, but they also have resources and technology to control it, the report said.

It said during 2009 investments in low carbon business areas of renewable, recycling and low carbon technology manufacturing reached $90 billion globally.

Mr Naiko said already Tanzania has taken steps to implement the Agriculture First (Kilimo Kwanza) policy by involving eight TNCs which would help develop the Southern Agricultural Growth-Tanzania Corridor (SAGCOT).

He assured investors that Tanzania will continue to utilize other TNCs that have chosen it as their investment destination to help drive other priority sectors. He named these as infrastructure, extraction industries, agro industries and tourism.

For her part, the deputy country director of UNDP, Ms Louise Chamberlaine, said UN organizations, including UNDP, UNIDO and UNEP, have been supporting the development and dissemination of renewable energy technologies in Tanzania as part of efforts to reduce global warming.

She said the UNREDD program, a joint initiative of UNDP, FAO and UNEP, aims to reduce emissions resulting from deforestation and forest degradation.

“The strategy here is to provide incentives at different levels for communities and other forest users to adopt sustainable forest management practices,” she said.

She said to achieve this, reducing emissions from the forest sector needs to be turned into an economic opportunity.  The UN system is working with the Tanzania government to establish the right approaches, policies and strategies, she added.