The global alliance aimed at helping developing countries to fight climate change should receive at least 25% of the revenue of the EU Emissions Trading Scheme, according to the EP Development Committee. In a report adopted on Monday, MEPs also question the sustainability criteria of biofuels.

The Global Climate Change Alliance proposed by the European Commission is intended to help the LDCs (Least Developed Countries) and SIDS (Small Island Developing States) to limit the impact of global warming.

In a report drafted by Anders Wijkman (EPP-ED, SE), the Development Committee argues that the budget of €60 million proposed by the Commission for 2008/2010 is not enough. MEPs believe the long-term funding goal should be at least €2 billion per year by 2010 and between €5 billion and €10 billion by 2020.

To finance this increase, MEPs urge the Commission and Member States to earmark at least 25 % of expected revenues from auctioning within the EU Emissions Trading Scheme (EU ETS) in the next trading period, to fund measures in developing countries. Forest protection and the reduction of emissions caused by deforestation and forest degradation should be a central concern of the Alliance.

The committee also calls for financial support, technical assistance and technology transfer measures, so as to facilitate the use, at the earliest stage possible, of technologies which emit low greenhouse gas levels and of environmentally friendly production methods.

Funding compatible with the goal of development

To ensure that development aid is not diverted to pay for the fight against climate change, MEPs insist that any money drawn from the Thematic Program For Environment and Sustainable Management of Natural Resources including Energy (ENRTP) or the European Development Fund (EDF) is used only for measures compatible with development aid as defined by the OECD's Development Assistance Committee (DAC).

Call to review biofuel sustainability criteria

The EP committee calls on the Commission to review its proposal with regard to the sustainability criteria for biofuels. Stricter requirements should be laid down for any claims of benefits to the climate and ecosystems, taking account of the effect of indirect changes and in soil use and any impact on the development of local communities.

New sources of funding

Lastly, the report says that new funding must be found from sources such as humanitarian funds for responding to climate-related disasters, Common Foreign and Security Policy (CFSP) funds and the Instrument for Stability in the context of preventive security policy or in response to climate-related security threats or conflicts. Green taxes and public-private partnerships would be another possibility.