Additional tools

•  

• 
• 
• 
• 
• 

Effective and balanced delivery

Despite the difficult economic situation and tight budgetary constraints, the EU has mobilised €2.34 billion in fast start finance in 2011. Together with the €2.34 billion provided in 2010, this brings the EU fast start contribution to date to €4.68 billion, or 65% of the overall pledge for 2010-2012.

To ensure timely and efficient delivery, most of the EU fast start funding is being deployed through existing and already operational cooperation instruments and initiatives.

EU fast start funding is helping developing countries both to implement immediate, urgent action to tackle climate change and to prepare actions for the medium and long term. It includes activities related to capacity building and the development and transfer of technology. In particular, fast start finance enables developing countries:

• To protect themselves better against severe weather events and other adverse effects of climate change. This includes promoting national adaptation planning as well as funding for science and analysis to support decision making;
• To grow and develop on a sustainable low carbon path, including through support for projects on low carbon energy, energy efficiency and low carbon transport;
• To protect forests while also supporting economic development. These actions are often referred to by the acronym REDD+ (reducing emissions from deforestation and forest degradation);
• To prepare for the effective and efficient implementation of a new climate regime and scaled-up financial flows in the longer term.

Providing transparency on commitments

Transparency about fast start financing plays a crucial role in building confidence in the international climate change negotiations. The EU is reporting to the UNFCCC on an annual basis.

Detailed reports of the state of delivery of EU fast start funding for 2010 [2.94 MB] and 2011 [2.79 MB] were presented at the international climate talks in Cancun and Durban respectively. The EU has also produced a comprehensive list of actions [412 KB] supported by EU fast start financing, shown by recipient country and by donor.

Many of the EU Member States and the Commission have also published detailed information on their ongoing initiatives on the UNFCCC and faststart finance websites.

Combining grants and loans

EU grant funding has increased significantly in 2011, reaching two-thirds of the total funding mobilised. Grants and loans both have important roles to play in climate finance. Blending grants and loans help to maximise the amount of finance available by leveraging investments and private sector co-financing.

EU climate loans are offered on highly concessional terms that include a major grant element of up to 75%. There is demand for such loans, particularly for mitigation. EU loans are consistent with the Debt Sustainability Framework, meaning that they are not made available to countries which cannot afford to repay them.

Integrated into broader development strategies

Fast start financing comes on top of other Official Development Assistance (ODA), of which the EU is the world's leading contributor, providing almost 60% of global ODA.

The EU seeks to ensure that climate finance, including fast start funding, does not undermine or jeopardise the fight against poverty and continued progress towards reaching the Millennium Development Goals. In practice, actions to reduce greenhouse gas emissions and adapt to the negative impacts of climate change often contribute to alleviating poverty. Projects to increase resilience to climate change or to give access to efficient energy sources are two such examples.

European Commission contributing €150 million

The European Commission has pledged a total of €150 million additional grant funding as its contribution to fast start finance in the period 2010-2012.

To date, €100 million has been mobilised. Half (€50 million) supports adaptation in least developed countries and small island developing states through the Global Climate Change Alliance (GCCA). The countries benefiting this year are Gambia, Benin, Bhutan, Lao PDR, Samoa and countries of the lower Mekong river delta. One-third (€33 million) supports mitigation of emissions; and the rest goes to reductions in emissions from deforestation and forest degradation in developing countries (REDD+), the promotion of urban climate strategies and actions and support for climate smart agriculture in a wide range of developing countries in Africa, Latin America and Asia .