4 October 2011: The Economic and Financial Affairs Council of the EU, which gathers EU finance ministers, has adopted conclusions on climate finance, in which the Council stresses the need to provide a transparent report on fast-start finance to ensure trust among UNFCCC parties, confirming that the EU will report in Durban on this issue.

The Council, which met in Luxembourg, on 4 October 2011, underscored the need to: address regulatory barriers and develop supporting policy frameworks for the private sector’s climate-related investments in developing countries; and establish a robust carbon market driving the carbon price necessary for low-carbon investment.

The Council recommended: seeking agreement on an open and transparent process to address the conclusions and recommendations of the forthcoming final report prepared for the G20 Finance Ministers meeting on climate finance sources; identifying a path for scaling up climate finance from 2013 towards 2020 in the context of meaningful mitigation actions and transparency on implementation; carrying out further work on the carbon pricing of global aviation and maritime transportation within the International Maritime Organization (IMO) and the International Civil Aviation Organization (ICAO) to develop without delay a global policy framework avoiding competitive distortions or carbon leakage; and taking into account national budgetary rules and the UNFCCC principles and provisions in the use of potential revenues. The Council further proposed developing a common European position on the rules being developed in the UNFCCC on monitoring, reporting and verification (MRV) of financial support.

On an effective design for the Green Climate Fund as an element of an ambitious and balanced outcome in Durban, the Council emphasized the need for: transparent rules for the selection of projects and programmes; clear control procedures on the functioning of the Fund; complementarity to existing institutions; and the Fund to play a catalytic role in assisting developing countries in their efforts to pursue transformational low-carbon and climate-resilient development paths, including through effective and efficient mobilization of private capital, and provide support for adaptation.

It also noted that the Standing Committee should assist the Conference of the Parties (COP) in providing guidance with respect to the UNFCCC financial mechanism aiming at improving coherence, encourage synergies and coordination in the delivery of international climate change financing; and specifically review the distribution of climate finance, identify finance gaps and provide a regular overview of climate financing provided to developing countries. [EU Council Conclusions on Climate Finance]