LUXEMBOURG, (Reuters) – European finance ministers  agreed yesterday the bloc should hand billions of euros to poor  countries to help them fight climate change, but environmentalists said the pledge was too vague.

EU Monetary Affairs Commissioner Joaquin Almunia defended  the slow pace of progress.
“The financial issues, as always, are not the easiest ones,”  he told reporters. “But without a high degree of consensus of  how to finance the climate change policies and strategies, these  strategies will not progress. So, our credibility is at stake.”

The key issue at climate talks in Copenhagen in December  will be finding the finance needed to persuade developing  nations to help tackle a problem they say has been caused by  rich, industrialised nations.

Such funding could help them cut emissions, develop  drought-resistant crops or find new water sources as rising  temperatures deplete the glaciers on which millions depend for  summer meltwater.

Conclusions from the meeting highlighted a report by EU  finance experts that said poor countries would need about 100  billion euros ($138.7 billion) a year by 2020 to cut carbon  dioxide emissions, and a further 20-50 billion to cope with  climate impacts.

“This is going too slowly,” said Greenpeace campaigner Joris  den Blanken. “They need to provide more clarity and concrete  commitments, otherwise they will go to the G8 meeting next month  with empty hands.” Group of Eight leaders meet in Italy from  July 8-10.

Ministers made clear that poor nations would be expected to  deliver concrete proof of emissions cuts in return for the cash.
“The European Union is prepared to consider all sorts of  financing arrangements, and in the interests of the taxpayer,  money has to be spent wisely,” said Czech Finance Minister  Eduard Janota.

Ministers’ recommendations to a meeting of their leaders  later this month said support should “maximise climate value for  climate money”.
They raised the possibility that poor nations would have to  bid for the money in a competitive tender, which would select  the most effective carbon-cutting proposals.

EU states will also have to decide how to split the cost of  helping out poorer nations. “It’s important to say also that  burden-sharing will be based on ability to pay and  responsibility for emissions,” said Janota.