Taoiseach pledges up to €100m to EU aid fund

CLIMATE CHANGE TALKS: TAOISEACH BRIAN Cowen has pledged a contribution of “up to €100 million” from Ireland for a €7.2 billion…

CLIMATE CHANGE TALKS:TAOISEACH BRIAN Cowen has pledged a contribution of "up to €100 million" from Ireland for a €7.2 billion EU "fast-start" programme to help developing countries tackle climate change in the next three years.

Although the Government had previously signalled its commitment in principle to allocating the money in addition to its existing overseas development aid budget, Mr Cowen first said that was a matter for the Cabinet, before saying the commitment would involve “new money”.

The EU deal on the fast-start programme at a summit yesterday is designed to provide a fillip to the UN climate change talks in Copenhagen, where world powers are trying to develop a global agreement to succeed the Kyoto pact.

EU leaders want to escalate work against climate change before any deal made in Copenhagen comes into force in line with a recommendation from the European Commission that wealthier states throughout the world should contribute an annual total of €5-7 billion to such a scheme.

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Member states’ annual contribution to the EU fast-track plan over three years – €2.4 billion – exceeds the highest level of the commission’s indicative range for the project by €300 million.

With a little less than €1.8 billion on the table when talks broke up on Thursday, Sweden’s rotating presidency of the EU had an annual target of €2.1 billion in mind in overnight talks.

“It was possible through the night to get contributions from all 27 member states,” said Swedish prime minister Fredrik Reinfeldt.

With 22 countries on board at the outset of the final negotiation, EU leaders overcame their differences yesterday morning to unanimously agree to participate.

Mr Cowen increased Ireland’s offer by some 10 per cent from an outline commitment of “up to €90 million” that was tabled in advance of the summit, a move that came as Britain, Spain and Italy increased their offers. Britain’s fixed contribution will be €500 million, up from €400 million at the start of the talks. The French and German governments each pledged commitments of €420 million per year. “We see this financing as a way both for the union to show good faith, but also to inject a positive dynamic into the negotiations in Copenhagen,” Mr Cowen said.

He said the Government’s pledge reflected the State’s “fair share” of the union’s efforts and was a very major contribution given the sacrifices being made by the Irish people to the arrest the crisis in the public finances.

Asked if the allocation would be in addition to the existing aid budget, the Taoiseach said “this will be a decision for the Government to make”.

Pressed on the matter, he said there was no change to the Government’s commitment in principle to make contributions in addition to the existing budget.

“I’m just saying the Government will formally make a decision on these matters. The Government has to make that decision. But, obviously, there will be new money involved, there’s no question about that.”

EU leaders left open the question of whether they will increase the union’s emission-cutting target to 30 per cent of 1990 levels by 2020. While this conditional offer depends on the commitments made at Copenhagen by other developed economic blocs such as the US and Canada, the union’s leaders may convene an extraordinary summit in Copenhagen next Thursday to increase their target.

An EU source briefed on yesterday’s talks said that one option was for the union to increase its emission-cutting target to 25 per cent in recognition of increased commitments elsewhere that did not fully meet the European criteria. Mr Reinfeldt said the EU was serious in its pledge to increase its overall target, but only if other wealthy regions followed. “We must see movement from other developed parts of the world before Europe is ready to move,” he said. “We will show flexibility.”