Poor countries 'unable' to absorb climate funding, EU warned

EurActiv: While governments haggle over the amounts needed to finance climate adaptation in developing countries in order to close a global agreement later this year, concerns are being raised that the demand side of adaptation has been ignored. If climate negotiators continue to have hang ups over the question of how much funding is needed for adaptation, they will fail to address the other key issue of establishing a mechanism to ensure that adaptation actually takes place, Philip Mikos, head of unit at the European Commission's development department, told a Development Policy Forum roundtable on 29 May.

Debating where the money for tackling climate change should come from, participants in the roundtable agreed that while funds for adaptation can be found, the demand side will need more work. It is not obvious that developing countries, some of which are already having difficulty absorbing development aid, will be able to make efficient use of the additional funds they could receive under a new global climate treaty, the forum heard.

"The most fundamental requirement is assets to demand," said Johan Schaar, director of the Swedish Commission on Climate Change and Development. He pointed out that much public funding will be needed to create safety nets in poor countries which guarantee sufficient income for people to access markets and adaptive technologies. Schaar argued that the three years between the conclusion of the climate agreement and its entry into force in 2012 will be crucial for poorer nations to build the capacity needed to benefit from future funding.

The roundtable also strongly argued against financing climate efforts through development assistance. Such funds should be additional and monitored by a global board to ensure that the money finds its way to those most in need. Official development assistance (ODA) has traditionally been seen as serving the donor countries' political interests rather than assisting the least-developed countries….

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