Redistributing your wealth: EU’s aviation carbon funds could aid developing world

So, inclined to make compulsory contributions to third world despots? The EU thinks it’s just the ticket

The EU is considering the deployment of carbon allowance revenues from international airlines to fund climate aid to the poorest countries, under a planned $100 billion-a-year global relief fund.
Draft conclusions for an Ecofin finance ministers meeting on 15 May, seen by EurActiv, say that finances “from auctions of aviation allowances in the EU ETS [Emissions Trading System] could help to support climate action in developing countries.”

Development groups say that the text could help end the EU’s bitter dispute with countries such as China and India over climate levies raised on their airlines.

“It is really crucial that the wording stays,” Lies Craeynest, a spokeswoman for Oxfam told EurActiv.

“Dedicating revenues to climate action in developing countries would help restore their trust and garner support for a resolution to the debate around including aviation in the ETS.”

“It would give a clear signal that the EU’s inclusion of aviation in the ETS is a climate measure to reduce emissions, rather than a tax on the international airlines sector.”

If approved, the document would be the most explicit commitment yet by the EU’s finance ministers to capitalise the Green Climate Fund, launched at last year’s Durban Summit, which is due to begin operations in 2020.

But sources close to the talks say that a diplomatic “battle” is ongoing, with Poland and Lithuania fighting to have the sentence removed from the draft conclusions.

EurActiv

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2 responses to “Redistributing your wealth: EU’s aviation carbon funds could aid developing world

  1. Spending someone elses money is always fun. Taking the moral highground without taking any part yourself. Hypocrisy at it’s finest.

  2. Eric Baumholer

    Europe and the US have a long-running policy dispute over aid to developing countries. The US tends to provide food and farm technology. Europe tends to provide money — the ‘Let Them Eat Euros’ approach.

    To be sure, it’s possible to weaponize food and farm technology, in a clumsy sort of way, but real weapons cost money, and Swiss banks will take nothing else.

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