Sunday, June 7, 2009

Poor nations need $142 bln/yr in climate fight-EU

Reuters, 5 June 2009 - Poor countries will need to be given about 100 billion euros ($142 billion) a year by 2020 to help them cut emissions in the fight against climate change, a draft report for European Union finance ministers shows.

The report, obtained by Reuters, aims to inform the ministers ahead of a meeting in Luxembourg next Tuesday at which they will try to agree an EU approach to global climate talks in Copenhagen in December.

The key issue in Copenhagen will be finding the finance needed to persuade developing nations to cut their carbon dioxide emissions and to adapt to a problem they say has been caused by rich, industrialised nations.

Between half and two thirds of the cheapest options for cutting greenhouse gases up to 2020 or 2030 are in developing countries, says the report prepared by the EU's Economic Policy Committee and the Economic and Financial Committee.

The emissions cuts would partly pay for themselves because cleaning up power generation and industry also reduces their consumption of expensive fossil fuels, but an extra 100 billion euros a year of investments would still be needed by 2020.

This would include measures to halt the destruction of rainforests and to curb emissions from agriculture.

"Financing to cover additional costs to mitigate greenhouse gases in developing countries will need to come from developing countries' own contributions, international public finance and the carbon market," the report said.

"It would need to be scaled up gradually, starting shortly after the Copenhagen agreement," it added.