13 November 2012: The European Council adopted conclusions on climate finance during the 3198th meeting of the Economic and Financial Affairs Council. The Council confirmed contribution to date of €7.1 billion by the EU to meet its fast start finance (FSF) commitments under the UN Framework Convention on Climate Change (UNFCCC).

In its conclusions, the EU reaffirms its commitment to contribute €7.2 billion to help meet the collective commitment by developed countries in the Copenhagen Accord and the Cancun Agreements to provide US$30 billion of fast start finance (FSF) between 2010-2012. The Council encourages contributions by emerging economies to finance adaptation and mitigation in line with their respective responsibilities and capabilities, and emphasizes that climate finance mobilized beyond 2012 by developed countries should be matched by measurable, reportable and verifiable climate action.

The Council reiterates that the EU will work after 2012 to scale up climate finance to mobilize US$100 million by 2020 in the context of “meaningful mitigation actions and transparency on implementation,” and confirms that EU climate adaptation finance will take into account the needs of vulnerable countries, including small island developing States (SIDS), least developed countries (LDCs) and Africa.

The Council also: reiterates the necessity to set price signals through market-based instruments, including in the global aviation and maritime sectors, and calls for tangible progress towards global and effective carbon pricing mechanisms under the International Civil Aviation Organization (ICAO) and International Maritime Organization (IMO); acknowledges the important role of development banks in mobilizing climate finance; and welcomes initial work of the Board of the Green Climate Fund (GCF). [Statement by Climate Action Commissioner Connie Hedegaard] [European Council Conclusions on Climate Finance]