US embraces US$100bn long-term financing – subject to conditions

The US is prepared to work towards a goal of mobilising US$100bn a year by 2020 for developing countries, in return for conditions including full transparency from developing countries on mitigation, US Secretary of State Hillary Clinton has announced in Copenhagen.

Developed and developing countries agree developing countries' mitigation actions that are supported by the developed world should be subject to international monitoring, reporting and verification (MRV) rules.

But the US, joined by others like the EU, is demanding that mitigation actions funded entirely domestically should also be subject to these rules. China and the G77 object.

"It's hard to imagine the US would commit if there is not transparency from China [and others]," Ms Clinton said. "There are many ways to achieve transparency but there must be a willingness to move to transparency. It's a kind of deal-breaker for us."

Other conditions for the money are "decisive national actions" from developed and major developing nations, an "operational accord" that internationalises these actions, and assistance for nations most vulnerable to climate change as a part of that.

The UN climate talks are at a "critical juncture", she said. "It's no secret we have lost precious time. The talks have been difficult. It can no longer be about "us versus them". The time is at hand for all countries to reach for common ground."

The US$100bn will come from "a wide variety of sources", she said. "It is not important to agree how we will raise it but to agree that is what we are going to do." There would be "a significant focus on forestry and adaptation particularly for the poorest and most vulnerable".

The figure is well below the €100bn, or US$145bn, the EU has proposed is necessary for 2020 (subscription required).