Reuters AlertNet Lite - German minister eyes jet fuel tax to help Africa

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German minister eyes jet fuel tax to help Africa

27 Mar 2007 14:34:12 GMT
Source: Reuters

By Tom Armitage BERLIN, March 27 (Reuters) - Germany's development minister said on Tuesday a tax could be levied on jet fuel and the proceeds spent on helping developing countries offset the effects of climate change.

Minister Heidemarie Wieczorek-Zeul told reporters a suggestion being considered by the EU to raise money by taxing jet fuel was "worthy of discussion".

"There are various different innovative financing methods," Wieczorek-Zeul said. "If there were to be a jet fuel tax ... then it would also be a possibility to use the proceeds of this to help developing countries cope with climate change."

She stressed this was a measure that had not been discussed by the Group of Eight development ministers who convened in Berlin for a two-day meeting to lay the groundwork for development issues at June's G8 summit at Heiligendamm.

She told a news conference attended by ministers from the other G8 nations that it was one possible method that richer nations could use to help Africa prepare for global warming.

Germany is the president of both the G8 and the European Union. The G8 industrialised nations club comprises Germany, the United States, Britain, France, Italy, Canada, Japan and Russia.

The G8 ministers stressed in the meeting the need to limit deforestation in developing countries. But the United States has made it clear it does not like the idea of financing the development of these countries' forestry.

The informal G8 development meeting, which closed on Tuesday, included for the first time delegates from developing nations Brazil, China, India, Mexico and South Africa.

"We wanted to make clear that the G8 is not a closed club and that we all are committed to the implementation of the Millennium goals," Wieczorek-Zeul told reporters.

The eight Millennium Development Goals include pledges to halve extreme poverty and halt the spread of HIV/AIDS by 2015.

Richer nations are also encouraged to raise the proportion of their wealth that they give to developing nations. Wieczorek-Zeul stressed the need for donor nations to agree on common standards for aid and sustainable investment in nations.

China has been criticised for its "handouts" to Africa as it pours cash into developing economies in exchange for raw materials needed to fuel its booming industry.

Group of Eight heads of state are expected to pledge extra money at the Heiligendamm meeting to fight AIDS/HIV among women and children, particularly in Africa.

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Last updated:Tue Mar 27 14:35:18 2007