KEB, Alm.del - 2012-13 - Bilag 17: Kopi af brev af 29. juni 2012 om klimafinansiering, fra klima,- energi- og bygningsministeren

Dear colleague,During the Environment Council meeting on 11 June 2012 there was an informalMinisterial lunch discussion on how to take climate finance forward after 2012.Ministers engaged with great enthusiasm in the fruitful debate which brought manyinteresting ideas to the table. With this letter I would like to take the opportunity toconvey some key messages from the discussion with special emphasis on theelements where involvement from Ministers of the Economic and Financial AffairsCouncil (ECOFIN) would be needed to ensure necessary progress.Climate finance is one of the corner stones of the international climate changenegotiations within the UNFCCC. The Fast Start Finance period was the beginningof a longer term commitment culminating in 2020 where the EU together with otherdeveloped countries are to mobilise jointly 100 billion USD from private, public andinnovative sources every year. With the Fast Start period coming to an end and inorder to achieve our global climate change objectives, the EU and its MemberStates need answers with regards to climate finance post 2012.Climate finance is required in order to ensure the necessary paradigm shift towardslow-emission and climate-resilient development pathways in developing countries. Itis reassuring that a consistently growing number of mitigation projects are nowbeing planned and launched in developing countries, a fact recognised in theECOFIN Council Conclusions of May 2012. It is vital that the EU has acorresponding answer regarding climate finance. In this regard the challenge is two-fold: On the one hand climate finance must continue to play a crucial role to ensureenhanced action on mitigation and adaptation in developing countries on theground. After all, action on the ground ultimately is what counts in bringing aboutthe transformative shift globally. On the other hand raising ambition on climatefinance in the context of the UNFCCC negotiations is inseparable from raising thelevel of mitigation ambition within these negotiations, an effort the EU hasspearheaded along with many other countries.The ECOFIN Council Conclusions of May 2012 provide a solid basis for thecontinued engagement of the EU and its Member States in the area of climatefinance but more progress is needed in order to achieve the objectives mentionedabove. Ministers for Environment found it of great importance to keep a continuedfocus on this issue and will return to the matter in the autumn under the CypriotPresidency. In the meantime Ministers for the Economic and Financial AffairsCouncil (ECOFIN) could continue their work to ensure progress on a number of

issues as outlined below, while recognising that some of these issues have alreadybeen considered in previous Council Conclusions:- common ground on climate finance after the Fast Start period ends, ideally byconfirming before Doha that the EU and its Member States will continue to deliversupport individually at least at Fast Start Finance levels.- immediately initiate the work to identify a path or a roadmap for scaling up climatefinance from 2013 towards 2020 considering indicative milestones and mapping outthe potential of the different sources. This is “the other side of the coin” of askingdeveloping countries to raise their level of ambition.- analyse how innovative sources, such as a contribution from the carbon pricing ofinternational transport (bunkers), could contribute as a possible source of climatefinance, including to the GCF. There is merit in the continued dialogue involving allrelevant policy areas to address crosscutting issues e.g. ways to address theconcerns of the poorest and most vulnerable developing countries.- consider how finance from the auctioning of aviation allowances in the EU ETScould help support climate action in developing countries, while stressing that it willbe up to each Member State to determine the use of such revenues as outlined inthe Directive on the inclusion of aviation in the ETS (2008/101/EC).- ensure that experiences from initiatives on mobilising private finance could beused to showcase examples or feed into the private sector facility of the GCF.- continue work on defining or conceptualizing what is meant by the term “mobilisedprivate finance” and how this should count towards the USD 100 billion commitment.One parameter in this regard could be to recognise that private finance ischaracterised by its mobilisation by public means, instruments or incentives.Ministers for Environment (ENVI) look forward to collaborating closely with Ministersfor the Economic and Financial Affairs Council (ECOFIN) during the upcomingCypriot Presidency to ensure progress on the important matter of climate finance inorder to achieve the climate objectives of the EU and its Member States.