EU Dodges Decision on Climate

By ALESSANDRO TORELLO
LUXEMBOURG -- European Union finance ministers failed to agree on how to fund the fight against climate change, passing the issue to EU leaders, who will meet later this month.
Climate change led the agenda of the 27-nation bloc's monthly finance gathering.
The EU is preparing the bloc's negotiating position for the global summit in Copenhagen in December.
The contribution of rich countries to the financial burden of poorer nations struggling to reduce greenhouse-gas emissions and limit the effects of climate change is instrumental to a global deal.
However, EU governments are fighting over how much they should have to give.
Former communist bloc countries such as Poland don't want to give much at all, while Sweden pleads for generosity.
Others, such as Italy, argue it would be better not to flag a precise number before the last stage of the negotiations in Copenhagen, as this would limit Europe's room for maneuvering.
"It is a disappointing outcome, that we weren't able to reach an agreement," said Swedish Finance Minister Anders Borg.
The European Commission, the bloc's executive office, says developing countries are likely to need €100 billion ($149 billion) a year by 2020 to limit greenhouse-gas emissions and adapt to the effects of climate change, such as increased floods.
Without a deal Tuesday, EU leaders will have to talk hard to find an accord when they meet in Brussels on Oct. 29-30.
The EU, which is urging rich countries to cut emissions 20% from 1990 levels by 2020, wants two parameters -- total pollution and national wealth -- to determine how to divide the global cost of paying for climate-change action.
Write to Alessandro Torello at alessandro.torello@dowjones.com