Brussels: European leaders promised yesterday to provide developing countries with 7.3 billion euros (Dh40 billion) over three years to try to win their support for a climate change deal in Copenhagen.
Finance has been a major hurdle to a global climate agreement to replace the Kyoto Protocol, which expires in 2012. But European Union (EU) leaders, despite domestic budget concerns, said they were determined to provide an incentive for a deal.
"Finance is key to getting this deal done," European Commission President Jose Manuel Barroso told reporters after EU members agreed to provide 2.43 billion euros a year to developing nations from 2010-2012.
Poor nations are unconvinced that industrialised states will fulfil pledges to help them tackle climate change. The EU hopes those suspicions might be set aside if wealthier countries can be convinced to pay up to 21 billion euros over the three years until the new agreement to replace Kyoto kicks in.
Such money might be used to curb carbon emissions, to develop drought-resistant crops or to find new water sources as wells dry up, all measures to alleviate possible climate damage.
Yesterday's agreement by EU leaders, hammered out over a two-day meeting and after a final push for more contributions, would account for just over a third of the 21 billion euros.
"It was possible through the night to get contributions from all 27 member states," said Swedish Prime Minister Fredrik Reinfeldt. "We urge other developed parts of the world to make the same contributions."
Mounting debt
The pledges came despite the fact public finances in many EU countries are in disarray after the global economic crisis, with budget deficits and debt soaring.
Richer governments have poured billions to battle the crisis and save jobs, while Hungary, Latvia and Romania have been forced to seek aid. Britain's pledge of 1.6 billion euros over three years and Sweden's of around 800 million stood out as the most generous compared to their current economic standing in the EU.
Britain's credit rating is currently a source of concern after it spent large sums in bailing out banks. Poverty campaign group Oxfam warned that much of the money had been found by raising existing budgets for overseas development aid.
