Alistair Darling to call for EU fund to help poor nations cut emissions

• Chancellor to push member states to commit to €10bn a year• US to be urged to match the European contribution
Ashley Seager
guardian.co.uk, Tuesday 20 October 2009 11.49 BST
The European Union should commit €10bn (£9.1bn) a year in direct funding to help developing countries adapt to the effects of climate change and reduce their emissions, Alistair Darling will say today.
The chancellor will use a regular meeting in Luxembourg with his counterparts from across the EU to urge them to contribute to new funding ahead of the climate change conference in Copenhagen in December. Britain will commit €1bn and wants the funding to be delivered by existing institutions, such as the World Bank.
Darling wants developed countries to agree to firm commitments ahead of the Copenhagen conference to convince developing countries the rest of the world is serious about supporting them to meet emissions targets.
"It's in every country's interest that we agree tough action on climate change at the Copenhagen conference in December. As the prime minister has said, there are now fewer than 50 days to set the course for that action.
"We need to recognise there are responsibilities on both sides. Europe must play a critical role both by showing leadership and by bringing developed and developing nations together around a common action plan."
Darling's call for €10bn would represent the EU's contribution to at least €30bn in direct public funding for developing countries, with the chancellor intending to call for the US to match the EU contribution. Britain estimates the developing world will need at least €100bn a year by 2020, if it is to meet recommended minimum targets to cut emissions to 50% of 1990 levels by 2050.
While the richest countries currently account for 75% of emissions, more than 90% of future emissions growth will come from developing countries.
The UK estimates that of the €100bn needed, €50bn could come from carbon markets with another €15bn to €20bn from richer developing countries, such as China
The call comes ahead of the G20 finance ministers' meeting in St Andrews, Scotland early next month, where the UK will try to hammer out a consensus on a small number of options for climate finance – with the US and China expected to be the most difficult to win over.