Saturday July 25, 2009

EU considers billions for poor before climate talks

By Pete Harrison and Mia Shanley

BRUSSELS/ARE, Sweden (Reuters) - Rich countries should immediately mobilise billions of dollars in development aid to the poorest nations to win their trust in the run-up to global climate talks in Copenhagen, a draft EU report says.

An internally displaced boy is photographed outside his family tent at the UNHCR (United Nations High Commission for Refugees) Jalozai camp, about 140 km (87 miles) north west of Pakistan's capital Islamabad on July 17, 2009. (REUTERS/Ali Imam)

OECD countries should also fulfil their existing commitments on overseas aid, which would more than double those aid flows to poor nations to around $280 billion annually by 2015, it added.

The recommendations are made in a draft report by the European Commission and Sweden, which holds the EU's rotating presidency and has convened the ministers in a Swedish mountain resort to prepare for climate talks in Copenhagen in December.

Prospects of a deal have been boosted by fresh engagement by China and the United States.

But the EU is worried they may fail to reach a deal due to a gap in trust between poor countries and the rich, industrialised states they blame for causing climate change in the first place.

"Clarifying and increasing the global contribution to adaptation funding between now and 2012 could contribute significantly to trust-building with least developed countries," said the Swedish report.

"A specific EU commitment is desirable before Copenhagen," said the report, which will be finalised in coming weeks. Rich countries should immediately mobilise $1-2 billion to assist vulnerable, low-income countries, it added.

Jean-Louis Borloo, the French ecology minister, told Reuters on Friday that rich nations would need to scale up their commitments, implying that poor nations would need around $200 billion annually by 2020.

"It's an absolute disgrace to leave Africa in the greatest insecurity," he added. The Swedish report singled out Africa for help in cutting developing renewable energy.

And it said OECD countries should live up to existing commitments of 0.7 percent of national income for overseas aid, compared to an average of 0.3 percent currently.

"In absolute terms, this would mean moving from around $120 billion in 2008 to around $280 billion by 2015," it added.

Any funds to help poor nations deal with climate change should come on top of current aid payments, said the report.

But Oxfam International said climate funds should come on top of the $280 billion commitments, rather than the $120 billion that is actually paid.

"The big flows of money after Copenhagen, should be on top of that 0.7 percent," said Oxfam climate campaigner Tim Gore. "We mustn't divert funds that would otherwise be spent on schools and hospitals."

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