New Delhi: The European Commission has proposed a €2-15 billion funding every year to developing nations from 2020 for action on climate change, but has implied that countries such as India be kept out of this.
The proposal said that “advanced developing nations”—that could mean including India and China—should not only be able to fund their mitigation actions domestically but also have sufficient resources to stimulate private investments.
The Commission has further proposed in a paper titled Global Finance Blueprint for Ambitious Action by Developing Nations that countries such as India contribute to a global fund beginning 2012 that would help developing nations cope with climate change.
Raising resources: Smoke emanating from a South Korean motor factory. The EU plans to tap the carbon market to fund 40% of money required for climate change mitigation and adaptation in developing countries.Bloomberg
With just three months left for global climate change talks at Copenhagen, Denmark, in December, this suggests a hardening of stance of the developed world on commitments towards reducing emissions.
India’s environment minister Jairam Ramesh said at a conference on Friday that a global deal at Copenhagen is not possible without substantial financial transfer to developing countries.
The latest proposal falls significantly short of what developing countries have been demanding—1% of the GDP of the developed nations. African countries have threatened to walk out of the Copenhagen talks if the rest of the world doesn’t step up and ensure almost $70 billion a year in climate funding for African nations.
On emission cuts, the European Union said it is ready to reduce emissions by 20% below 1990 levels by 2020, but emerging economies should also commit to at least a 15% emission reduction by that year. India has opposed any such reduction commitment on its emissions which, it says, would dampen its growth prospects.
Denmark’s prime minister Lars Lokke Rasmussen said if the world wants to limit increase in average global temperatures to 2 degrees Celsius, then both developed and developing nations have to take urgent action and that poverty alleviation or development goals cannot be tackled without addressing climate change.
He added that the European proposal is the first to put out concrete numbers for funding. Rasmussen also said he could not comment on whether this would be the final offer.
The Commission said that from 2013, it would depend on the carbon market to fund 40% of the money required for climate change mitigation and adaptation in developing nations. The emerging economies should be able to generate 20-40% of the proposed global fund, it said. The remaining—around $22-50 billion a year—will be paid for by the European Union and the rest of the developed nations.
The European bloc also suggested that two-thirds reduction of energy sector emissions—which account for the highest proportion of global emissions—in developing countries should be on its own through domestic financing and private investment. Only 10-20% of energy sector reforms in such countries will get international funding with most of that going to poorer countries. At least 70% of India’s energy generation is from coal, which contributes heavily towards emission of greenhouse gases that lead to global warming.