A Commission staff working document on "Scaling up international climate finance after 2012" confirms that raising USD 100 billion per year by 2020 will be challenging but it can be done, if the right balance is struck between public funding, funding raised from international carbon markets, as well as private funds, partly leveraged by development banks. Climate funding and development aid need to go hand-in-hand and it requires strong international coordination to ensure an efficient spending.
Connie Hedegaard, Commissioner for Climate Action, said: "The EU is already well on track to deliver its fast start funding for the period 2010-2012. And we will also contribute our fair share to climate funding in the long run. Both private and public sources of financing from the EU and other developed countries are essential to support actions for reducing emissions and adapting to climate change in developing countries." Olli Rehn, Commissioner for Economic and Monetary Affairs, emphasized that "many advanced economies will face serious fiscal constraints in the years to come. Therefore this cannot be paid by public money alone. We need to rely also on innovative sources of financing, in particular, in the private sector and carbon markets. We should make good use of innovative financing mechanisms in close cooperation with development banks."