Meeting divided on financing aid to developing world

CLIMATE CHANGE: EU LEADERS failed to resolve deep divisions over the financing of climate change assistance to the developing…

CLIMATE CHANGE:EU LEADERS failed to resolve deep divisions over the financing of climate change assistance to the developing world, but adopted a common position ahead of the UN Copenhagen summit on the scale of the overall measures required.

Led by Poland, a group of eastern European governments derailed plans to achieve a more far-reaching agreement. They demanded a breakdown of contributions by EU country, and financial relief.

UN secretary general Ban Ki- Moon had urged EU leaders to continue to demonstrate bold climate leadership, specifically calling on EU Commission president Jose Manuel Barroso to provide the “political leadership needed to achieve a breakthrough on climate financing”.

Divided over their tactical approach to the Copenhagen negotiation, EU leaders farmed out to a working group crucial decisions over the scale of the financing required from developed countries and the mechanisms under which the bloc will split the burden between member states.

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Also unresolved is the extent of the EU’s own financial commitment to the plan, with a push from British prime minister Gordon Brown for €10 billion in annual payments failing to gain support at the summit.

While many observers believe the EU may have to contribute as much as €15 billion per year, Taoiseach Brian Cowen declined yesterday to say what the ultimate Irish burden might be, but said the State would pay its fair share.

While wealthier EU countries say an all-embracing pact would weaken the union’s negotiating position in Copenhagen vis-a-vis major global powers outside Europe, the EU’s failure to reach a broader agreement at this time signals the potential for discord at the UN level over financial transfers.

At the end of their two-day meeting in Brussels, however, EU leaders endorsed targets set by the European Commission under which developing countries would receive up to €100 billion annually by 2020 to avert climate change.

Keen to protect its image as a global leader in the battle against climate change, the EU will promote this target in negotiations ahead of the Copenhagen summit with the US, China, India and other global players.

The EU’s political leaders remain at odds, however, over the amount of money that governments around the world should contribute to the effort.

“The overall level of the international public support required is estimated to lie in the range of €22 billion to €50 billion, subject to a fair burden-sharing at the global level in line,” said Sweden’s EU presidency at the end of the Brussels summit.

While the balance would be met by developing countries themselves and trading in carbon emissions, failure of EU leaders to determine how much should be funded by western governments was seen as a setback for the Copenhagen summit’s prospects.

Also unresolved is the question of how much EU leaders believe should be allocated to a “fast-start” climate change programme between 2010 and 2013, with global financing of between €5 billion and €7 billion per year under discussion.

“The council underlines that a figure will be determined in the light of the outcome of the Copenhagen conference,” the Swedish presidency said.

Climate-change activists criticised the outcome of the summit. “The EU’s suggestion today of global public financing worth €22 billion – €50 billion per year for developing countries to tackle climate change, falls short of what is needed,” Oxfam said.

The organisation said the Irish Government failed to make clear that money from its commitment to spend 0.7 per cent of gross national product on overseas aid will not be used to pay for Ireland’s climate pollution.

On Thursday, Minister for Foreign Affairs Micheál Martin said the Government agreed in principle that the expenditure should be in addition to the existing budget on overseas development aid.