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news20091216gdn5

2009-12-16 14:11:24 | Weblog
[News] from [guardian.co.uk]

[Environment > Copenhagen Climate change conference 2009]
Copenhagen: Head of African bloc calls on poorer nations to compromise over climate funding
'Because we stand to lose more than others we have to be flexible,' warns the Ethiopian prime minister, Meles Zenawi

John Vidal in Copenhagen
guardian.co.uk, Wednesday 16 December 2009 17.51 GMT Article history

The head of the African group of nations at the UN climate change conference in Copenhagen has proposed a finance deal where rich countries would pay for schemes to help poor states adapt to climate change and develop their economies using clean technology.

The proposal, from the Ethiopian prime minister, Meles Zenawi, of $50bn (£44bn) a year for poor countries by 2015 and $100bn (£89bn) by 2020, is far less than many developing nations had been calling for, but is roughly in line with a proposal in June by the UK prime minister, Gordon Brown, and an offer agreed by the EU in October.

Control over the funds would lie with the countries receiving the money. The G77 group of 130 countries, backed by the least developed countries and small island states, has long proposed that $400bn (£356bn) a year, or 1% of rich countries' GDP, would be the appropriate figure.

Meles also proposed that 50% of the fund created should be allocated to vulnerable and poor countries as well as "regions such as Africa and small island states".

In addition, he suggested that a group of high level financial experts investigate and report back within six months on possible "innovative" ways to raise the money. IMF special drawing rights, as proposed by the G77 and financier George Soros, a carbon tax, a possible "Tobin tax" on all financial transactions and even taxes on flights and shipping would all be assessed. His proposal is likely to have been largely agreed by rich countries following intense talks in the last 24 hours between Meles, Gordon Brown and other world leaders.

Meles admitted that many Africans would not be happy: "I know my proposal will disappoint those Africans who ... have asked for full compensation ... for damage done to our development prospects. My proposal dramatically scales back our expectation of the level of funding in return for more reliable funding and a seat at the table in the management of such fund."

"Because we stand to lose more than others we have to be flexible," he said, adding that there was a danger that no deal would be done. "That is not an idle threat but a solemn promise by Africa that we will strive for a fair and just deal," he said.

The influential economist, Lord Nicholas Stern, welcomed the proposal as "strong and reasonable" and "with the interests of developing countries at its heart". He said: "Of course, there will be those who say, understandably, that the plan should go further, but we are at a critical stage in the negotiations. This is a major step forward.

"The focus on new sources of finance provides confidence that new monies are genuinely new from the perspective of developing countries, and allows rich countries with very stressed public finances to explore new and internationally based sources of revenue."

Developing countries have yet to react officially to the proposal, but it was dismissed by some African MPs and many development groups.

Liz Gallagher, climate finance specialist at Cafod, said: "Such a turnaround on the level of finance being asked for by Africa points to the influence of some of the big powers behind the scenes.

"To slash the figure from $400bn to $100bn is a high-risk strategy – on the one hand Africa could be showing its willingness to compromise; but on the other it is placing its trust in the US and other developed countries to deliver. Whether this strategy is wise or naive remains to be seen."

Awudu Mbaya, president of the Pan-African Parliamentarians Network on Climate Change, said: "If Prime Minister Meles wants to sell out the lives and hopes of Africans for a pittance he is welcome to, but that is not Africa's position".

In a separate development, the UK's Department for International Development announced £50m of funding for green energy projects in developing countries. The "Scaling-up Renewable Energy Programme" is administered by the World Bank and will focus on deploying renewable energy in a small number of low-income countries. On Monday, the US pledged £31m to the same fund, which with the UK contribution now stands at over £153m.

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