EU nations get cold feet over climate change fund
By Barbara Lewis; Editing by John Stonestreet
7 May 2012 BRUSSELS (Reuters) – EU nations are dithering over how to fill a multi-billion-euro fund to help tackle climate change, just as the region’s executive body hosts talks with countries likely to bear the brunt of extreme weather. The European Union recommitted to providing 7.2 billion euros $9.4 billion (5.8 billion pounds) for the fund over 2010-12, according to draft conclusions seen by Reuters ahead of a meeting of EU finance ministers next week. But after that, how much cash will flow is unclear as the text – drafted against the backdrop of acute economic crisis in the euro zone – only states the need to “scale up climate finance from 2013 to 2020” without specifying how. The Green Climate Fund aims to channel up to $100 billion globally per year by 2020 to help developing countries deal with the impact of climate change. Its design was agreed at international climate talks in Durban last year. Europe’s Climate Commissioner Connie Hedegaard is fighting to build on Durban’s fragile agreement to keep alive the United Nations process on tackling climate change. […] Non-governmental organisation Oxfam said “intransigence” from some EU member states was putting the coalition at risk as they are arguing against firm commitments to finance after 2012. “At a critical moment in the fight against climate change, Europe looks to be sitting back rather than stepping up,” Lies Craeynest, Oxfam’s EU climate change expert, said. Debate has also focused on how much of the EU’s $30 billion share of the $100 billion should come from the private sector, which would reduce the need for public funds. The draft conclusions ahead of the May 15 EU ministerial meeting noted “further efforts are required to clarify the concept of private financing and its contribution to the $100 billion”. Some money could come from levies on shipping and aviation, although these sources are contentious. […]
