- EU draft urges fossil fuel industry to aid climate finance in poorer nations.
- The current UN commitment of $100 billion annually falls short; the new target is expected to be higher.
A European Union (EU) draft calls for fossil fuel firms to aid climate change efforts in poorer nations. The move aligns with a United Nations (UN) target as countries gear up for talks in Baku.
These talks aim to set a new climate finance goal to help nations adapt to the impacts of climate change. The current UN commitment falls short at $100 billion annually.
The new target is expected to be much higher. The draft states the oil and gas sector should pitch in.
The EU emphasises the need for diverse funding sources. This includes contributions from fossil fuels. However, the draft might change before EU ministers adopt it.
The debate in Baku will focus on funding sources. Will it rely solely on public funds or include private sector involvement? The Organization for Economic Cooperation and Development (OECD) estimates developing nations’ climate needs could hit $1 trillion yearly by 2025.
EU climate chief Wopke Hoekstra seeks support for global fossil fuel taxes. But gaining consensus is tough. Last year, a CO2 levy for shipping faced opposition, with talks continuing.
The draft also insists significant economies like China should contribute. But Beijing has opposed this in past negotiations. Financial responsibility will be a crucial issue at COP29.