EU Sees Possibility Of COP26 Compromise On Elusive Carbon Market Deal From Reuters

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© Reuters. FILE PHOTO: Frans Timmermans, Executive Vice President of the European Commission and European Commissioner for the European Green Deal, speaks during an interview at the EU Delegation Office in Jakarta, Indonesia on 18 October 2021. REUTERS / Ajeng Dinar Ulfiana / File P

By Kate Abnett and Will Russell

BRUSSELS (Reuters) – Negotiators at the UN climate summit are nearing a compromise for a long-elusive deal on whether to tax global carbon markets to finance climate adaptation in poor countries, the leader said. of the climate policy of the European Union.

Carbon market controversies have been a persistent sticking point in talks to reduce greenhouse gas emissions and curb global warming, derailing the previous two UN climate summits.

Now some 200 countries at the UN summit in Glasgow, Scotland, are approaching the Friday deadline to agree on the rules intended to put the 2015 Paris Agreement into practice.

Poor countries say a tax on carbon markets would provide vital support, but rich nations, including EU members, fear it will impose unwelcome costs on participants.

“I think there is room for compromise on this,” EU climate policy chief Frans Timmermans told Reuters in an interview.

“But the next two days will show if we can really do it.”

Timmermans did not say whether the compromise would entail a softening of the EU’s opposition to the proposal.

‘VERY CLOSE’ TO $ 100 BILLION IN 2022

Developing countries and nations vulnerable to the impacts of climate change have pushed for the tax to help them cope with floods, droughts and increasingly destructive seas.

They say taking money out of a carbon market that, according to some experts, could be valued at $ 170 billion a year by 2030, would create a predictable flow of much-needed money.

Wealthy nations have already failed to deliver the promised climate finance, missing the 2020 deadline to transfer $ 100 billion annually to help the world’s poorest nations cope with global warming, and instead expect to comply. commitment in 2023.

Timmermans said rich countries are “very close” to being able to deliver the $ 100 billion in 2022.

“We hope that at the end of the COP, we can conclude that we will be there next year, not in 2023,” he said.

So far, of the nearly $ 80 billion that rich countries contributed in 2019, only a quarter has gone to climate adaptation projects such as storm shelters or defenses against rising seas.

The EU this week pledged € 100 million to a United Nations climate adaptation fund. Taken together, the EU and its 27 Member States are the largest contributors to climate finance.

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