Climate Change

Climate Finance - Update I

EU leaders agree on climate finance

Published: Monday 07 December 2009

EU leaders in Brussels have agreed to contribute € 7.2 billion ($10.6 billion) to a fast start climate fund to help developing countries adapt to climate change. Around 20% of the finance is intended for forest protection.

The figure, though higher than what EU leaders expected, is still much lower than what developing countries are demanding. Another concern being expressed is whether the finance will be new and additional or just existing aid budgets recycled into climate change money.

France and UK have suggested that in the medium term, "innovative financing mechanisms, such as the use of revenues from a global financial transactions tax" can be used to generate funds for helping developing nations deal with mitigation and adaptation.

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