17 November 2010

A new report [1], commissioned by CAN Europe [2], examines the EU’s commitment to keeping the promises made by developed countries in Copenhagen to provide immediate “new and additional” climate cash for developing countries. [3]

Based on the findings of the report, green and development NGOs call for an improved transparency in EU’s reporting on “fast-start” climate finance.

Complete reporting transparency on near-term finance could set a good precedent for long-term climate finance and build the necessary trust between developed and developing countries to reach a successful agreement in the international climate negotiations that will take place in Cancun later this month.

EU Finance Ministers (ECOFIN Council) meeting today in Brussels are expected to adopt the first annual EU progress report on meeting its targets on “fast start finance,” which is scheduled for release this week.

NGOs are urging a review and expansion of the information in the EU report by including vital information identified in the NGO-commissioned report. Some of the main issues identified in the publication by CAN Europe and others include:

 -        Lack of a common global reporting framework;

 -        Funding sources being identified as aggregate figures, rather than on a country-by-country basis;

 -        Unclear classification between grants and loans - over half of funding worryingly appears to be loans;

 -        Lack of specific project details, including geographical distribution; and

-       No definition of the criteria for funding to be classified as “new and additional,” i.e., proving that the funding is not simply recycling past aid promises.

[1] CAN-Europe with WWF, APRODEV, CIDSE. November 2010. Has the EU kept its fast-start climate finance promises?

[2] Climate Action Network (CAN) Europe is a coalition of 140 citizens’ organisations working in Europe to halt the most dangerous effects of climate change. CAN Europe commissioned and edited today’s report, which was completed by an independent party based on publicly available data. CAN Europe members CIDSE and WWF, as well as CAN partner network APRODEV, also contributed to the report.

[3] One of the main outcomes of the UN climate summit in Copenhagen last year was the pledge by developed countries to provide $30 billion of “new and additional” funding in 2010-2012 to help developing countries adapt to climate change and curb their emissions. The EU’s share was €7.2 billion or €2.4 billion per year.

Read the full report