Rich countries face $100bn annual climate change aid bill

Rich countries must get ready to provide some $100bn a year by 2030 to help developing nations tackle climate change, G20 finance ministers meeting in London are to be told.

An international market in carbon will also be essential to ensuring that the necessary hundreds of billions of dollars can be provided by both the private and public sectors of developed countries, according to a confidential briefing paper for the meeting of G20 ministers seen by the Financial Times.
The briefing was prepared by top officials of the leading countries, and makes it clear there is a large gap between the amounts poor countries will need to adapt to climate change and cut their emissions, and the amounts so far agreed to help them – which total only tens of billions of dollars. But public funding will not be enough by itself. Mechanisms such as a carbon trading system or carbon taxes will be needed.

“The need for comprehensive carbon pricing is vital as part of a broad policy response to climate change and to create incentives for emissions reductions and facilitate the transition to a low-carbon economy,” the briefing says. The document notes that all of the credible estimates produced so far exceed $100bn (€70bn,