FinSoul has learned that British Prime Minister Gordon Brown and his French counterpart, President Nicolas Sarkozy have recently joined forces to back a proposed Tobin tax on financial market transactions to help fund the fight on climate change.
The controversial idea comes as the EU recommitted its intention to raise its emission target from the earlier 20% to 30% if a concrete deal can be agreed on at the UN’s Copenhagen climate change conference and confirmed that leaders had agreed to contribute more than expected to a global “fast track” fund aimed at aiding poor nations cope with the effects of climate change, pledging to make €2.5bn or around $3.66 bn annually available to the fund.
The climate fund will run from 2010 to 2012 and will assist poorer nations with climate adaption and low carbon projects and looks set to top €7bn ($10.25 billion) a year, substantially higher than the previously expected €3.3bn.
FinSoul understands that the UN climate chief was quoted as saying the move was "hugely encouraging"
Both governments issued a joint statement saying they would work closely to set up proposals for a global Tobin tax to provide tens of billions in climate funding that will be required in the long term.
The German Chancellor Angela Merkel has indicated that she would back the levy with reports that other EU leaders are also offering tentative support for the idea.
