Developing nations robbed of $30bn in climate funds

DOHA TALKS Existing Funding Recycled,Loans Given: Oxfam Nitin Sethi TNN Doha: A report released on the eve of climate change talks in Doha has suggested that rich countries have largely cheated the developing nations of the $30 billion they had committed to transfer to the poor ones from 2010- 2012. The fund has largely been agreen-wash recycling and renaming existing funding as climate funding and giving loans instead of grants,the report said.The developed world in 2009 had promised to fast-track funding of $30 billion between 2010-2012 and an annual transfer of $100 billion starting 2020.The money was not aid or a loan.It was reparation for having contributed largely to climate change. It was meant to go to the poorest countries to help adapt to the inevitable climate change.The funds were supposed to be new and in addition to the overseas development aid (ODA) money that the rich world already gives.It was supposed to be largely for adaptation and with flexibility for the poor countries to use based on their priorities. Research by Oxfam now suggests the developed countries have deceived the world and largely given loans or recycled existing promises as part of the ODA commitments as contribution to the fast-track funds. Only one-third the total funding provided till date appears to be new money and only 24% of it was in addition to existing aid commitments.Only 43% of this went as grants,the rest was given as loans,on which the developed countries will actually earn interest.A mere 21% of this was spent on adaptation to climate change. Oxfam said while releasing the report,It reveals that many of the contributions so far are more of a false start than a fast start.Developed countries have yet to make any concrete financial commitments for the period 2013 to 2020.Oxfams research suggests that levels of public climate finance are set to fall in 2013 compared to the past three years.At the very moment that finance must be scaled up to meet the $100 billion per year Copenhagen promise,rich countries look set to scale down. The Doha talks starting on Monday are expected to see developing countries demand more clarity from the developed world on how they wil upscale the promised funds.The rich world is keen to let private investments largely be the solution but the developing countries want public funds as the central source. BURNING ISSUES Will the level of cuts undertaken by the rich world to reduce greenhouse gas emissions be increased or would developing world be forced to take more burden Will India have to undertake new targets to reduce emissions from agriculture and other specific sectors Will India have to give in more to get European Union to operationalize Kyoto Protocol Will Obama-2 bring any commitment on finance or emission reduction from the US Will the new post-2020 global treaty be based on equity Will the rich world force the world to trash existing discussions on finance,technology,unilateral measures and other issues of the developing world