EU to postpone decision on climate finance until autumn[en] 

Meeting in Brussels on 18-19 June, EU leaders will discuss international negotiations for a global climate change agreement to replace the Kyoto Protocol, which expires in 2012. The parties to the United Nations Framework Convention on Climate Change (UNFCCC) will meet in Copenhagen next December. 

At EU level, the European Commission presented proposals in January for approval by the 27 members of the EU. The proposals urged emerging economies such as China and India to take on their fair share of responsibility by agreeing to limit the growth of their emissions by 15-30% below business-as-usual levels by 2020 (EurActiv 29/01/09). 

The first United Nations Framework Convention on Climate Change (UNFCCC) talks in Bonn (29 March–8 April) launched the negotiations for a draft agreement in view of the final conference (EurActiv 09/04/09). 

The draft negotiating text, prepared ahead of June's second round of climate talks, revealed a divide between rich and poor countries. Developing nations are asking their industrialised counterparts to commit to sizeable CO2 reductions and to offer financial aid to help poor nations in their efforts. But developed countries have not made any firm commitments on funding, and only the EU has taken on a firm CO2 reduction target, which nevertheless fails to meet the developing world's demands (EurActiv 29/04/09). 

In the meantime, the negotiating text has ballooned to hundred of pages as all parties have reacted with amendments. No agreement was reached at the June talks on financing for developing countries to mitigate and adapt to global warming. 

Arriving in Brussels yesterday (18 June) for a two-day summit, heads of state and government will today discuss progress made in climate talks to decide on a global agreement in Copenhagen by the end of the year. 

Leaders are expected to back the incoming Swedish EU Presidency's proposal to draw up a work programme and ensure proper EU coordination and decision-making ahead of international negotiating meetings leading to the Copenhagen conference. 

The European Council will ask the Commission to promptly table proposals, especially on financing, to allow EU leaders "to take appropriate decisions on all aspects of financing at its October meeting," state the draft conclusions . 

Danish premier sidelines targets for stabilising emissions 

Speaking at a conference organised by the European Policy Centre, Danish Prime Minister Lars Løkke Rasmussen confirmed the decision on financing would come in few months, but stressed leaders will agree on  a number of principles setting out the terms for financial contributions.

Rasmussen, whose country will host the global climate change talks in December, stressed the need for targets and national commitments on reductions of CO2 emissions that will lead to stabilisation of global emissions in 2020. "It would be nice to have everybody agree on short term targets, but what we need is to stabilise emissions by 2020," he said. 

"If we allow some countries to increase emissions for some time, it means that others have to be more ambitious," he added, noting that the EU should maintain its leadership role and keep its ambitious target of 30% cut by 2020. 

"Instead of discussing on how we should try to push the US to be more ambitious, I think it is important to find a common ground upon which to build the sound architecture of a deal," he argued, pointing out industrialised countries as the EU and the United States must agree on mid-term emission targets. 

Rasmussen wants the EU to maintain leadership towards reaching an ambitious global deal, even if that means that others will follow different paths at different speeds. "If we need to be 100 km from here in an hour we can drive 50 km/hour for some time – but at some stage the pace will certainly have to be increased considerably – and surely we should not wait 50 minutes before we do it," he said, metaphorically-speaking. 

Adequate financing linked to specific actions in emerging economies 

Despite progress made on financing mitigation and adaptation in developing countries, Rasmussen acknowledged that adequate funding should be mobilised, and linked it to specific actions and low-carbon strategies developed by emerging economies. 

On this point, the draft summit conclusions note that the financing mechanism should as far as possible build on existing – and if necessary reformed – instruments and institutions. 

"Efficient, effective and equitable financing mechanism must be ensured," states the document, backing the European Commission's proposal to establish a comprehensive system to measure, report and verify mitigation actions in developing countries. 

Carbon border tax 

Commenting on French President Nicolas Sarkozy's plan to impose a carbon tax on products imported from countries that do abide by international agreement like the Kyoto Protocol, the Danish premier said it was not advisable. "First we have to negotiate an international agreement. Then we will deal with the question of carbon leakage," he said.