Climate change could push millions of people in developing countries back into poverty. Together the EU and its Member States are the largest source of climate finance to developing countries. In a report published today, the European Court of Auditors found that, although climate-related aid has been managed well by the European Commission, cooperation between the Commission and Member States is inadequate. “For the EU to maximize its impact, the Commission and Member States must work closer together”, said Gijs de Vries, the ECA Member responsible for the report. “The Commission has not exercised sufficient leadership and the Member States have not been sufficiently responsive to its initiatives.”
In 2009, developed countries agreed “Fast Start Finance” of USD 30 billion for 2010-2012 and a long term commitment of USD 100 billion per year by 2020. EU Member States and the Commission have not agreed on how to meet their long term commitment and the extent to which the EU has fulfilled the fast start finance pledge is unclear. There is no EU-wide agreement on how to define climate finance and an effective monitoring, reporting and verification system is not yet in place. The EU has agreed on a Code of Conduct on Complementarity and the Division of Labour in Development Policy, but Member States and the Commission do not exchange information on the country allocations of climate finance.