Shipping's US$40 billion may fund climate fund

Negotiators will discuss the proposal, which was put forward by developing countries, but several delegates at the summit doubted there would be agreement on it, expecting any final deal at the end of the week would be worded vaguely. "I don't expect any clear outcome," said European Member of Parliament Bas Eickhout, "[e]verything boils down to where is the money? I think that the entire financial decision is going to be a big deal in Rio," he added, referring to a UN conference on sustainable development in June next year.

The United Nations hopes delegates attending the talks will agree on the design of the Green Climate Fund, which aims to channel up to $100 billion a year by 2020 to countries most at risk from the effects of climate change, such as rising sea levels and temperatures and crop failure. Revenues from aviation and shipping could generate around $40 billion, according to the IMF and the World Bank, but the detail of what kind of mechanism could be implemented to raise revenue was vague.

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