Oxfam: EU leaders must commit new money or risk climate deal collapse
Oxfam Ireland Press Release
28 October 2009
Miniature climate migration camps set up in European capitals to remind them what is at stake
Hundreds of miniature tents have sprung up in Dublin, Brussels, London, Berlin, and Madrid today to show An Taoiseach, Brian Cowen, and other EU Heads of State and Government what is at stake should they fail to agree a position on climate financing when they meet in Brussels tomorrow.
International aid agency Oxfam erected the tents to offer a glimpse of the future if people in poor countries – already suffering the effects of climate change – are not given enough new public money to protect themselves now.
The two-day EU Heads of State and Government Summit is the last chance for them to decide, before the UN climate talks in December, how much money the EU will offer. German Chancellor Angela Merkel and Polish Prime Minister Donald Tusk will come under particular pressure as their governments have both been accused of blocking an agreement to date. With just five negotiating days left before Copenhagen, a meaningful EU finance offer could rescue European leadership on tackling climate change, and put international talks back on track to success in Copenhagen.
Jim Clarken, Chief Executive of Oxfam Ireland, said: “It’s time for Ireland and other EU member states to deliver on climate justice. The EU clearly has the financial firepower (and political muscle) to help secure a deal at Copenhagen. We need to see a declaration of serious political will from EU leaders, putting specific commitments of new money on the table, if the world is to remain on target for success in Copenhagen.”
An estimated 26 million people have already been displaced as a direct result of climate stresses and each year a million more are displaced by weather-related events. Unpredictable and more extreme weather patterns are already devastating the lives of poor people living on the frontline of climate change: washing away homes, devastating crops through torrential rain or drought and putting health and lives at risk.
“Right now, European leaders are acting as though climate change is not their problem – but climate change knows no borders. Millions more people will be permanently displaced from their homes in the years to come unless rich countries invest in adaptation support in poor countries now,” said Clarken. “We will count the costs in lives lost if they do not.”
Oxfam International is calling on Europe, a chief architect of the climate crisis, to deliver €35 billion in new public finance every year to help developing countries cope with the impacts of global warming. This money needs to be additional to existing aid commitments of 0.7% GNI: the EU must not force poor countries to choose between building flood defences and building schools. It also asks leaders to deliver a cut in emissions of at least 40% on 1990 levels by 2020 in line with the science, to ensure global warming is kept below 2 degrees, and prevent even greater irreversible damage.
“Ireland has so far failed to deliver for climate justice. It’s time for this government to make a difference in the climate negotiations. Failing to stump up new money is giving with one hand while taking with the other. An EU finance offer can provide a spark to reignite smouldering international talks – but a pledge simply to re-brand money already promised for development aid would soon snuff that out. The Taoiseach must make it clear that Ireland does not support using development aid to pay for our climate pollution”, said Clarken.
For more information or interviews, please contact:
ROI: Paul Dunphy, Media and Communications Executive, 01 635 0422, paul.dunphy@oxfamireland.org
NI: Phillip Graham, Media and Communications Officer, 028 9089 5959, phillip.graham@oxfamireland.org
Notes to Editor
Background: EU State of Play
European Commission
On when to put money on the table:
The EC published a communication on climate financing on 10 September, containing estimates for the overall public financing needs in developing countries of €22-50bn per year by 2020, and estimating an EU fair share of this (based on responsibility for emissions and capability to pay) of €2-15bn. EC officials have said they are “confident” the European Council will agree a financing position based on these figures.
On additionality of money to 0.7% of GNI aid commitment:
The EC has some internal divisions over the question of additionality to commitments on aid. The 10 September climate financing communication made clear that additional finance over and above 0.7% was needed, but that Official Development Assistance (ODA) would also play a role in climate financing. Within the EC, some Directorates-Generals (such as that of Margot Wallstroem, former Environment Commissioner and vice-President of the Commission) support additionality to 0.7%. DG Development, on the other hand, has failed to provide a clear position on the subject.
UK
On when to put money on the table:
UK is firmly pushing to have Heads of State and Government agree a figure for the EU’s contribution in new and additional public finance under a Copenhagen agreement. It argues that such a figure is needed to break the deadlock in international talks, and should not therefore come with lots of conditionalities attached.
On additionality of money to 0.7% of GNI aid commitment:
UK has been one of the strongest champions for climate finance to be additional to existing aid commitments of 0.7% GNI. It has proposed language based on Gordon Brown’s speech in July that would not provide full additionality, but would cap any contribution to meet the EU’s climate financing commitments from Official Development Assistance (ODA) at 10%. The proposed amendment has yet to receive sufficient support to be adopted.
Germany
On when to put money on the table:
Germany has been a key blocker in making progress on the EU’s financing position.
Germany opposed the inclusion of any concrete figures at all at the EU Finance Ministers’ meeting on 20 October, and to date has been against Heads of State and Government agreeing figures for the EU’s contribution in new and additional public finance under a Copenhagen agreement until the last moment in Copenhagen itself. It sees the EU’s finance offer as a bargaining chip in the negotiations to be held back in order to squeeze maximum concessions from developing countries and other Parties in the global talks.
Until the re-election of Angela Merkel, Germany was able to argue that the coming election made committing to finance positions difficult, but Merkel has now taken personal control of the finance issue, so she will have no excuse not to deliver when she meets other European leaders this week.
On additionality of money to 0.7% of GNI aid commitment:
Germany has fought fiercely to water down any language that protects existing development commitments to 0.7% GNI from diversion to climate financing. The German development ministry wants to keep control of climate finance, and use it to count towards their 0.7% target.
France
On when to put money on the table:
France has played a relatively quiet back-seat role in negotiations over climate finance so far, but it is a key player in deciding the final position at the level of Heads of State and Government this week. Nicolas Sarkozy built up much political capital and trust with CEE MSs during the negotiations under his Presidency on last year’s EU Climate and Energy Package. France can stand up to Germany and be a deal-maker this week.
France is cautious about putting a figure for the EU’s contribution in new and additional public finance on the table in October – but is prepared to do this provided certain conditions and caveats are made clear, including that developing countries themselves (except Least Developed Countries) should also contribute to the financing needed.
On additionality of money to 0.7% of GNI aid commitment:
France has yet to define publicly a clear position – claiming in private that it sits somewhere in between the UK and Germany. France must now recognise that without clarification that climate financing must be additional to existing aid commitments to reach 0.7% GNI, any figure put on the table by the EU will amount to €0.
Poland (and other CEE MSs, incl. Hungary, Romania and Lithuania)
On when to put money on the table:
Poland has argued on behalf of a group of CEE MSs all year that the EU should not commit to an international climate financing offer until the internal EU division (‘burden-sharing’) of that amount is agreed. The EU has been keen to maintain consistency between its position on the global and its internal burden-sharing arrangements, both based on responsibility for emissions and capability to pay.
Poland would like an internal burden-sharing formula based on GDP (‘capability to pay’), since it is poorer in comparison to other MSs with relatively high emissions from its coal-based power sector. The EU overall benefits from a formula based more on emissions, since it is richer and with lower emissions in comparison to other countries/regions.
Until the EU finance ministers meeting last week, it seemed Poland would accept that there is very little difference for them between paying a larger share of a smaller overall amount, or a smaller share of a larger overall amount. Having blocked progress on the EU position once, a big question will be whether Poland is prepared to do so again.
Spain
On when to put money on the table:
Spain has played a quiet role in determining the EU’s climate finance position. But it wants to see a strong deal in Copenhagen, not least to lessen the burden on the Spanish Presidency of the EU in the first half of 2010, so should support a concrete EU financing commitment on new and additional public money, as a necessary step towards that.
On additionality of money to 0.7% of GNI aid commitment:
Spain is a strong supporter of meeting commitments to ODA, and one of the latest to join the group of countries supporting an EU commitment that climate finance must be additional to the 0.7% aid commitment.
Belgium
On when to put money on the table:
Belgium has weakened its stance on climate financing in the last 10 days. A strong supporter for most of the year on the need for the EU to put its financing cards on the table, the Flemish part of Belgium is now sounding cautious about the costs they will have to meet.
On additionality of money to 0.7% of GNI aid commitment:
A debate is raging in Belgium on additionality, which must be concluded by HoSG next week for the EU’s position to progress, and the impasse in global talks to be broken.
Netherlands
A champion throughout the year of both the need for the EU to make a concrete offer on new and additional public climate finance, and on the need to ensure that 100% of this is additional to the targets for development assistance already set.
Ireland
Ireland has yet to make clear its position on additionality of adaptation finance to overseas aid, despite public statements in favour of new and additional finance.
Italy
Italy is mostly concerned with the costs it thinks it will have to bare by increasing the EU mitigation target from 20% to 30% below 1990 levels by 2020, rather than paying for climate financing. Italy considered reasonable the EC’s initial financing estimates, suggesting that they will not be a key blockers on this issue.
Oxfam Ireland is an independent member of Oxfam International- a group of thirteen non-governmental agencies dedicated to fighting poverty and related injustice around the world.


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