The European Union is proposing a “war chest” to help collect and distribute the billions of dollars undeveloped countries will be paid to curb their greenhouse gas (GHG) emissions, reports Reuters.
This funding would be independent from an existing “Adaptation Fund” that aims to reduce the impact of climate change on crops and water sources, according to an European Commission draft report, reports Reuters.
The EU hopes to achieve an agreement on financial support for developing countries in order to increase the chance of success at international climate talks in December in Copenhagen, reports Reuters.
EU nations are pushing for an agreement by October on how much rich countries will offer as part of their share to fund poor countries.
British Prime Minister Gordon Brown said in the article that $100 billion will be needed annually by poor nations by 2020, but some environmentalists peg the figure near $140 billion, reports Reuters. Ethiopia says Africa will veto any deal that is not generous enough, according to the news agency.
The EU has suggested this money could be supplemented by taxing fuel for ships and aviation, and could be set up under the U.N. Framework Convention on Climate Change (UNFCCC), reports Reuters.
The report also notes that an international registry would verify that emissions cuts that are paid for are being carried out, but if the verification system was ineffective the EU might create its own independent fund, reports Reuters.