EU could give up to E15bn in climate aid by 2020

Europe could give E2-15bn to developing countries in 2020 to help them reduce greenhouse gas emissions and adapt to climate change, the European Commission said on Thursday. The EU's climate contribution would progressively increase to this level from 2013.

This represents 10-30% of the E22-50bn that the most economically advanced countries would provide through an international climate fund to help finance the E100bn cost poor nations are expected to face in 2020. Carbon markets would provide E38bn while E12-40bn would come from domestic private and public sources.

The plan was detailed in a long-awaited European Commission policy paper on climate financing unveiled on Thursday. EU environment commissioner Stavros Dimas said the plan gave the world "another signal", hoping it would help unlock international climate negotiations.

The commission says Europe's annual climate contribution could come from three sources: the EU budget (its preferred option), a separate climate fund or member states' coffers. The exact contribution would be determined by two factors: the share of global GDP in 2008 and the share of global emissions in 2005.

These factors could be used to determine other contributions to the international fund. One of the proposed formulas for calculating individual contributions is the following: climate aid would be 90% based on the share of global GDP (not GDP per capita http://www.endseurope.com/22095?referrer=bulletin&DCMP=EMC-ENDS-EUROPE-DAILY as previously reported) and 10% on emissions.

A table in a background document accompanying the commission's policy paper (p.13) shows potential contributions from each of the G20 group of the most advanced economies. The EU would also provide E0.5-2.1bn annually before 2013, the commission says.

Carbon markets' calculated contribution assumes that rich countries commit to a collective 30% emission reduction target, that sectoral crediting replaces the clean development mechanism (CDM) in advanced economies, and that surplus Kyoto credits (AAUs) are excluded from cap-and-trade schemes.

Follow-up: European Commission http://ec.europa.eu/ plus press release

http://europa.eu/rapid/pressReleasesAction.do?reference=IP/09/1297&format=HTML&aged=0&language=EN&guiLanguage=en,

policy paper http://ec.europa.eu/environment/climat/pdf/future_action/com_2009_475.pdf,

background paper

http://ec.europa.eu/environment/climat/pdf/future_action/sec_2009_1172.pdf,

and Q&A

http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/09/384&format=HTML&aged=0&language=EN&guiLanguage=en.

See also reactions from Oxfam http://www.endseurope.com/docs/90910b.doc and Greenpeace

http://www.greenpeace.org/eu-unit/press-centre/press-releases2/paying-climate-bill-10-09-0

and their joint media briefing http://www.endseurope.com/docs/90910a.pdf.

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