The EU scenario

05 November 2010

The EU has pledged an overall aggregate amount of FSF but thus far has not released detailed information regarding amounts of pledges from individual Member States. In addition, sources have not been identified, so the money pledged can actually just be redirected money from other funds already committed under ODA. We do not expect them to provide the clarity we seek in their first annual report on fast-start funding (FSF), to be presented before the next COP16 in Cancun. But we will keep pushing them on transparency, additionality and common reporting baselines.

The EU and its 27 Member States committed to deliver on average EU 2.4 billion annually for the years 2010 to 2012 to support for developing countries' mitigation and adaptation actions. This represents approximately one-third of the collective fast-start funding commitment subsequently made by developed countries. In June 2010, the EU presented a state of play of the delivery of fast-start funding during Bonn II, and confirmed that the combined EU pledges amounted to EUR 2.39 billion for 2010 and are estimated at EUR 7.55 billion for 2010-2012, with all 27 Member States and the Commission contributing to this funding.

The Commission pledges an annual amount of EUR 50 million per year for the period 2010-2012, covering adaptation and mitigation in a balanced way. The adaption part is provided under the Global Climate Change Alliance to the most climate vulnerable countries, in particular Least Developed Countries and Small Island Developing States. The mitigation part covers capacity building related to low-emission development and technology cooperation; and Reducing Emissions from Deforestation and Degradation.

Time line for influence

The EU will be discussing FSF internally during the next week and a half. The Joint Working Group on economic and financial aspects of climate change (EPC-EFC), Expert Group on Investment and Financial Flow (EGIF), the Presidency and the Commission have to prepare the EU's first annual report and key messages for Cancun before the November 17th in order for the ECOFIN to endorse it.