Oxfam: Ahead of Doha talks, Europe must plug looming climate finance gap

Council conclusions adopted today by Environment Ministers set out the European Union's expectations for the United Nations climate negotiations this year, but say little on how the EU will meet its commitment to help deliver $100 billion in climate finance by 2020, after Fast Start Finance runs out at the end of 2012.

Lies Craeynest, Oxfam EU Policy Adviser said:

“With more than 800 million people going hungry, poor people need the means to adapt as climate change hits their livelihoods and harvests. The EU cannot arrive at the UN climate talks in Doha empty-handed.

“Europe can find the funds without over-stretching national budgets. Member states should direct a portion of the revenues from the new EU Financial Transactions Tax and the money aviation will pay for its carbon pollution, to the Green Climate Fund to help poor countries hit by climate change."

Oxfam calls on the EU to set the bar for all developed countries to honour their commitments to scale up climate finance between 2013 and 2020. The EU should spearhead efforts to put together a climate finance package for 2013-2015 that is at least double the levels of the Fast Start Finance period, and include a commitment to fund the Green Climate Fund with $10-15 billion over the next three years.

Next steps for Europe to put together a climate finance package in the run up to Doha:
4-5/11 – G20 Finance ministers and Governors meeting in Mexico city
13 /11 – EU ECOFIN (draft report on Fast Start Finance for 2012, conclusions on Long Term Finance)
26/11-7/12 – Conference of the Parties (COP) DOHA

Notes to Editors

• Developed countries committed in Copenhagen in 2009 to mobilize $100 billion (73.43 billion euros based on 2009 prices) per year by 2020.
• The Fast Start Finance period will come to an end this year. The EU committed to pay 7.2bn Euros as part of this, and will provide a preliminary report on the total delivery at the ECOFIN of 13 November. The Environment Conclusions stress ‘the need for a signal to developing countries at the Doha conference on the continuation of climate finance after 2012’.
• At its second meeting, the Board of the Green Climate Fund (GCF) has decided that South Korea will host the Fund.  With good progress, the GCF could be ready to start receiving and disbursing climate finance by the end of 2013.
• A green light for a European Financial Transaction Tax through enhanced cooperation was given by the Commission on 23 October, and is now ready for adoption. Based on the initial European Commission proposal, the German Institute for Economic Research (DIW) estimates that a financial transactions tax implemented in 10 countries could raise €37bn. Just 20% of the EU FTT allocated to development and climate finance could already raise €7.4bn a year, half of which should go through the Green Climate Fund.