Climate aid reaches $30 bln goal, but is it new?

Climate aid reaches $30 bln goal, but is it new?
OSLO (Reuters) - Aid promises from rich nations to help poor countries slow global warming are reaching the $30 billion goal agreed in Copenhagen but analysts say much of that is old funding dressed up as new pledges.

A boy touches an ice sculpture of a polar bear as it melts to reveal a bronze skeleton in Copenhagen December 8, 2009. Aid promises from rich nations to help poor countries slow global warming are reaching the $30 billion goal agreed in Copenhagen but analysts say much of that is old funding dressed up as new pledges. (REUTERS/Bob Strong/Files)
Officially, the promises total $29.8 billion, Reuters calculations show, apparently meeting a pledge of "new and additional" funds "approaching $30 billion" for 2010-12 made at the U.N. summit in Copenhagen in December.

But austerity policies to combat government debt problems and a re-labelling of past promises will undermine real funding that is vital to unlock a new U.N. climate deal by showing that the developed world is serious about taking a leadership role, analysts say.

"I'm afraid the pledges of Copenhagen will not be realised," said Hans Joachim Schellnhuber, director of the Potsdam Institute for Climate Impact Research. "It would be a little political miracle if it happened. I'm fairly pessimistic."

He said that Germany, the biggest European Union economy, was unlikely to fulfil its promises even though it had fewer economic problems than most EU nations, struggling to plug huge budget deficits.

Climate aid is widely seen as a key to build trust between rich and poor in the run-up to the 2010 U.N. meeting of environment ministers, in Cancun, Mexico, from Nov. 29-Dec. 10.

The cash was meant as a "fast start" for action to slow floods, droughts, heat waves and rising seas. Donors say projects are starting, from Nepal to Mali.

Many poor nations say "new and additional" means cash above an unmet 1970 U.N. target for rich nations to give 0.7 percent of their gross national product in aid -- OECD figures show that aid totalled $120 billion, or 0.31 percent of developed countries' combined GNP, in 2009.

Developed nations have varying definitions of what counts.

RENAMING AID

"It's hard to know what's really new and additional," said Clifford Polycarp of the Washington-based World Resources Institute, which tracks pledges by all nations. Some funds were "restated or renamed commitments already made."

Japan's pledge of fast start funds is by far the highest -- $15 billion -- but much of the money stems from a "Cool Earth Partnership" agreed several years ago to run from 2008-12.

Among other big pledges, the EU plans $9.6 billion for 2010-12 and U.S. President Barack Obama plans $3.2 billion for 2010-11. But some money was committed before Copenhagen to climate funds, for instance managed by the World Bank.
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