ECOFIN misses the opportunity to address the Financial Transaction Tax, says CAN Europe
The Economic and Financial Affairs Council (ECOFIN) has adopted conclusions on key issues and next steps in international climate finance, reconfirming the EU and its member states’ commitment to provide €7.2 billion cumulatively during the period 2010-2012. The text includes potential new sources of income for climate finance and confirms the fact that the EU and its member states have mobilized €2.34 billion in 2010 in the form of fast start finance.
The meeting took place in Brussels on 3 May 2011. Its conclusions highlight that it will be feasible to meet the commitment by developed countries to jointly mobilize $100 billion per year by 2020 “in the context of meaningful mitigation action and transparency on implementation, to enable and support enhanced action on mitigation". This would include substantial finance to adaptation, technology development and transfer, capacity building and REDD+. The latter refers to reducing emissions from deforestation and forest degradation in developing countries, as well as conservation, sustainable management of forests and enhancement of carbon stocks-plus.
In addition, the text acknowledges that in light of current fiscal difficulties experienced by many governments “new and innovative sources of revenue, including some of those considered in the AGF report may be necessary to scale-up public finance in light of budgetary constraints”. According to ECOFIN, such financial instruments include the expansion of a global carbon market, including sectoral carbon market mechanisms, as well as carbon pricing of global aviation and maritime transportation may be sources for carbon finance. “Effective implementation of these instruments would require significant coordination in the relevant international fora”, underlines the text.
Climate Action Network Europe (CAN Europe), a network dealing with climate and energy issues, commented on these conclusions. “The text does conclude on many important issues but doesn't elaborate on the most pertinent question - how it plans to raise the 100bn promised to finance mitigation and adaptation actions in developing countries? In addition it fails to mention what sources would be looked into and misses the opportunity to address the Financial Transaction Tax (FTT)”, reads the CAN Europe press release.
Sources:
3088th ECOFIN Conclusions 17 May 2011
