Fight climate change with private sector funding, say EU Ministers of Economy and Finance

March’s meeting of the Ecofin Council underlined European finance minister support for incentives to enhance the global carbon market. This would be achieved by linking emission trading schemes within the OECD by 2015, and with ‘more advanced developing countries’ by 2020. However, ministers left the issue of funding the fight against climate change unresolved. They emphasised that while the “EU is ready to contribute its fair share”, most funding should come from the private sector. Discussions on climate funding at the Ecofin meeting were also curtailed as they followed a lengthy debate on reduced VAT rates for certain goods and services. The failure of the Ecofin Council to make specific recommendations relating to the financing of environmental initiatives has angered environmentalists.