Germany to Use CO2 Funds to Help Developing Nations
Date: 31-Oct-07
Country: LUXEMBOURG
Gabriel told reporters on Tuesday that Germany would set aside annually about 120 million euros (US$173 million) or more, depending on the price of carbon permits, to help fund efforts in poorer nations to adapt to and prevent global warming.
"If we don't make funds for adaptation and technology available, the developing countries will not be ready to join in" to fight climate change, Gabriel said.
The European Union's emissions trading system sets limits on the amount of carbon dioxide (CO2) that power companies, oil refineries and other energy-intensive businesses may emit.
Companies buy or sell permits from each other based on whether they overshoot or come beneath their targets.
From 2008 Germany will sell a larger portion of those permits to industry, rather than giving them away.
Gabriel said Germany would use more than a quarter of the proceeds the government gets from that auctioning to help developing countries with climate change adaptation.