Brussels, 07/10/2011 (Agence Europe) - EU environment ministers will meet in Luxembourg on Monday 10 October to prepare the EU position for the climate negotiations in Durban (COP 17, 28 November-9 December) to be put to the European Summit of 17-18 October (see EUROPE 10468). Member states' financial ministers have already completed their part of the task: funding the fight against climate change. In conclusions adopted unanimously on 4 October, the Ecofin Council states that, given the current severe budgetary constraints, the contribution by the public sector to funding will need to be “consistent with sound and sustainable public finances, and sound public financial management” through careful evaluation of needs, effective disbursement and an open attitude toward innovative sources of finance and approaches to broaden private sector involvement”.
That having been established, the Council reaffirmed the commitment by the EU and its member states to provide €7.2 billion cumulatively over the period 2010-12 for the immediate funding of aid for adaptation for developing countries and confirmed that the EU would report in Durban on the delivery of its commitment. On long-term funding - $100 billion per year by 2020 to support meaningful mitigation efforts in developing countries - the Council states that the EU and its member states are ready to contribute “their fair share” to the pot. It looks forward to the publication of the final report prepared for the G20 finance ministers in Cannes at the start of November as this should help ways to expand the flow of climate change finance to poorer countries.
The Council notes that it is essential that there should be a combination of public finance, including innovative sources and private sources, alongside increased lending and leveraging by financial institutions. It highlights that a robust carbon market is required, which drives the carbon price necessary for low-carbon investment. It reiterates that the carbon pricing of global aviation and maritime transport could prove useful in effectively reducing emissions from these sectors. The Ecofin Council also underlines that a stable, attractive and competitive risk-return profile of climate-relevant investments is a prerequisite to mobilise private sector capital. (AN/transl.rt)