Will Russell, Kate Abnett

BRUSSELS, (Reuters) – Negotiators at U.N.’s climate summit are moving closer to a deal for a long-elusive agreement on taxing global carbon markets in order to finance climate adaptation in developing countries. This was the European Union climate policy chief stated.

The persistent block in negotiations to curb greenhouse gas emissions, and global warming has been the carbon market dispute. This derailment of previous U.N climate summits was caused by these disputes.

Now, around 200 countries are at the United Nations summit of Glasgow in Scotland. Friday is the deadline for them to reach an agreement on the rules that will put into effect the 2015 Paris Agreement.

A tax on carbon markets is a good idea for poor countries, but wealthy nations like the EU are wary of any unwelcome cost to participants.

Frans Timmermans (EU climate policy chief) told Reuters, “I believe there is room for compromise on that,” in an interview.

“But it will be interesting to see if we are able to pull this off in the coming days.”

Timmermans was unsure if the compromise would allow for any relaxation of EU opposition.

“VERY CLOSE” TO $100 BLN 2022

Countries in developing nations and countries that could be affected by climate change have been pushing for the levy. This will help them to cope with increasing floods, droughts, and rising seas.

The experts claim that siphoning money from the carbon market, which is estimated to be worth $170 billion per annum by 2030, could create a reliable stream of cash.

The promise of climate finance has been broken by rich countries. In 2020, the deadline was missed to transfer $100 million per year to aid the world’s poorest. But, the nations expect to make good on the commitment in 2023.

Timmermans stated that rich countries are “very close to” being able deliver $100 billion by 2022.

He stated, “Hopefully, at the conclusion of COP we can conclude, that we will not be there in 2023.”

Only 25% of nearly $80 trillion in wealth countries have contributed to climate adaptation projects such as storm shelters and defenses against rising seas.

This week, the EU pledged 100million euros for a U.N. climate adapt fund. The EU, its 27 member countries and the EU are together the greatest contributors of climate finance.