Lack of new concrete EU commitments risks climate finance falling off a cliff

At the ECOFIN meeting today, EU Finance Ministers have failed to provide a clear answer to what Europe will do to ensure climate finance does not fall off a cliff once Fast Start Finance is fulfilled in December 2012.

Developing countries, particularly those of the alliance between the EU, Least Developed Countries (LDCs) and the Alliance of Small Island States (AOSIS), rightly expect that more, not less climate finance will be provided to help them deal with climate impacts and develop a low carbon economy.

Lies Craeynest, Oxfam’s EU Policy Adviser said:

“Europe’s climate support for developing countries has helped protect vital infrastructure, industry and agriculture from increasingly erratic and extreme weather over the last three years. Yet despite a rise in the frequency and intensity of hurricanes, storms, droughts and floods Europe is unwilling to increase their support for poor countries after 2012.

"The majority of the EU's contribution to Fast Start Finance – an emergency fund set up to help the most vulnerable countries adapt and develop in low carbon ways – consisted of re-labelled existing promises of aid money.  Poor countries must not be forced to choose between educating their children and protecting them from floods or hurricanes.

“Finance ministers should use the time between now and the UN Summit in Doha to prepare a new finance package of at least double Fast Start Finance levels which will ensure poor countries at the climate front line get the support they need to adapt - in addition to the money already committed to tackle poverty.

"Finance Ministers should start by committing part of the revenue from a European Financial Transaction Tax to the Green Climate Fund - ensuring that the Fund doesn't remain empty for the third year in a row.”

Related links

Council of the European Union: Conclusions on climate finance – fast start finance (pdf, 13 November 2012)

Why it's time to grow out of climate change