LUXEMBOURG, (Reuters) – European finance ministers agreed yesterday the bloc should hand billions of euros to poor countries to help them fight climate change, but environmentalists said the pledge was too vague.
EU Monetary Affairs Commissioner Joaquin Almunia defended the slow pace of progress.
“The financial issues, as always, are not the easiest ones,” he told reporters. “But without a high degree of consensus of how to finance the climate change policies and strategies, these strategies will not progress. So, our credibility is at stake.”
The key issue at climate talks in Copenhagen in December will be finding the finance needed to persuade developing nations to help tackle a problem they say has been caused by rich, industrialised nations.
Such funding could help them cut emissions, develop drought-resistant crops or find new water sources as rising temperatures deplete the glaciers on which millions depend for summer meltwater.
Conclusions from the meeting highlighted a report by EU finance experts that said poor countries would need about 100 billion euros ($138.7 billion) a year by 2020 to cut carbon dioxide emissions, and a further 20-50 billion to cope with climate impacts.
“This is going too slowly,” said Greenpeace campaigner Joris den Blanken. “They need to provide more clarity and concrete commitments, otherwise they will go to the G8 meeting next month with empty hands.” Group of Eight leaders meet in Italy from July 8-10.
Ministers made clear that poor nations would be expected to deliver concrete proof of emissions cuts in return for the cash.
“The European Union is prepared to consider all sorts of financing arrangements, and in the interests of the taxpayer, money has to be spent wisely,” said Czech Finance Minister Eduard Janota.
Ministers’ recommendations to a meeting of their leaders later this month said support should “maximise climate value for climate money”.
They raised the possibility that poor nations would have to bid for the money in a competitive tender, which would select the most effective carbon-cutting proposals.
EU states will also have to decide how to split the cost of helping out poorer nations. “It’s important to say also that burden-sharing will be based on ability to pay and responsibility for emissions,” said Janota.
