At the ongoing climate summit in Cancun, Mexico, the European Union has made the case of using loans over grants in providing climate financing. The proposal was met with resistance, with developing nations and aid groups saying loans are not acceptable on principle.

The bloc has committed euro50 billion (USD65 billion) to support African development initiatives in the next three years. The pledge was announced in the recently concluded Africa-EU summit.

Meantime, the U.K. is planning to increase its financial support to the global AIDS fight following the completion of the aid budget review, British aid chief Andrew Mitchell said.

The first donors conference for eastern Sudan has mobilized USD3.55 billion worth of pledges. Kuwait, Iran, the U.K. and the EU were among those that committed funding for the region during the event.

South Korea intends to double its annual emergency aid budget to 19 billion won (USD16 million) next year, while the European Bank for Reconstruction and Development will provide less new funding to Azerbaijan in 2011.

The United Nations, meanwhile, is seeking USD678 million to support humanitarian operations in Afghanistan next year. The World Bank has debarred two firms for engaging in corrupt and fraudulent practices in development projects and sanctioned 12 companies previously debarred by the Asian Development Bank as part of the mutual cross-debarment agreement forged by development banks early this year.

Appointments:

Dagfinn Hoybraten – board chair of the Global Alliance for Vaccines and Immunization.

James Helm – director of communications, U.K. Department for International Development.

About the author

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    Ma. Rizza Leonzon

    As a former staff writer, Rizza focused mainly on business coverage, including key donors such as the Asian Development Bank and AusAID.