New details of EU climate financing plans emerge

The EU could provide 20-30% of international climate funds for developing countries to help them reduce their greenhouse gas emissions and adapt to climate change, according to a leaked draft European Commission report.

The draft background report, seen by news agency Reuters, will be published alongside a commission paper on climate financing http://www.endseurope.com/22044?referrer=bulletin&DCMP=EMC-ENDS-EUROPE-DAILY due on Thursday, an EU climate expert told ENDS on Monday. The commission refused to comment on the issue.

Developing countries will need an estimated E66-80bn in public funds annually by 2020 to mitigate and adapt to climate change, according to the draft report. The funds must come on top of private financing from sources such as the global carbon market. NGOs say around E110 will be needed annually.

A key question is how much of this public money should come from an international climate fund that both developed and advanced developing countries would contribute to. NGO Oxfam says the vast bulk must come from such a fund. The draft report suggests Europe could contribute 20-30% to it.

The leaked report warns that international negotiations "appear to have reached an impasse", according to Reuters. "One way to make progress might be to take an explicit step-by-step approach to scaling up finance", the report's authors add.

G20 finance ministers meeting in London on Friday and Saturday failed to make significant progress on climate financing, drawing expressions of disappointment from EU economic affairs commissioner Joaquen Almunia and Swedish finance minister Anders Borg.

Industrialised nations sought progress but met resistance from advanced developing countries including China and India, according to media reports. US president Barack Obama has called on finance ministers to report on the issue at a G20 summit in Pittsburgh on 24-25 September.

Follow-up: G20 finance ministers' communique

http://www.g20.org/Documents/FM__CBG_Comm_-_Final.pdf

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