The African group of countries on Wednesday scaled back demands for climate finance from rich countries, meeting proposals made by developed nations and signalling agreement on a core obstacle in UN talks.

Addressing talks meant to agree a global climate pact, Ethiopian Prime Minister Meles Zenawi supported $100 billion annual funds by 2020 from developed countries to help the developing world fight climate change and adapt to its impact.

The European Union has proposed a figure of about $150 billion, and British Prime Minister Gordon Brown $100 billion.

"On longterm financing I propose funding for adaptation and mitigation (emissions curbs) should start by 2013, to reach up to $50 billion per annum by 2015 and $100 billion per annum by 2020," he said on behalf of the African group.

"No less than 50 per cent should be allocated to adaptation to vulnerable and poor countries and regions such as African and small islands states."

"The fund (would) be financed by creative financing mechanisms," he said, including carbon taxes and sales of emissions rights, hinting Africa would not insist on public money.

Zenawi also supported $10 billion per year short term funding from 2010-2012, exactly in line with suggestions by the European Union and the US.

"I know my proposal today will disappoint some Africans. My proposal scales back our expectation with respect to the level of funding in return for more reliable funding," he said. – Reuters