CONTAINING GLOBAL warming will require an additional €175 billion in annual investment by 2020, according to a European Union draft paper.

The paper, which says much of the €175 billion investment will have to be borne by the developed world, also forecasts that tens of billions of euro in further spending will be needed to help poorer countries prepare for even moderate warming.

Some of the ways that the EU proposes to raise those funds include requiring developed nations to pay for their annual carbon emissions, and levying taxes on aviation and maritime transportation.

The EU should also expand its emissions trading system into a global carbon market and explore the establishment of a multilateral insurance pool to help deal with natural disasters that result from global warming.

The final paper, which is to be released by the European Commission on Wednesday, sets out the bloc’s position ahead of negotiations in Copenhagen this December aimed at creating a global agreement to fight climate change.

The commission declined to comment on the draft, and people involved in negotiations said it was still under discussion.

The EU endorsed a plan in December to reduce the 27-nation bloc’s greenhouse gas emissions by 20 per cent from 1990 levels by 2020.

Member states and other developed countries are urged to increase that figure to 30 per cent. – ( Financial Timesservice)