African countries have scaled back demands for climate finance to support $100bn annual funds by 2020 from developed countries, according to Ethiopian Prime Minister Meles Zenawi.

The European Union (EU) has proposed about $150bn and British Prime Minister Gordon Brown $100bn toward the fund.

Addressing talks to thrash out a new climate pact, Ethiopian Prime Minister Meles Zenawi said that on long term finance funding for adaptation and mitigation should start by 2013, to reach up to $50bn per year by 2015 and $100bn by 2020, reports Reuters.

“No less than 50% should be allocated to adaptation to vulnerable and poor countries and regions such as African and small islands states,” Zenawi said.

The fund will be financed by creative financing mechanisms including carbon taxes and sales of emissions rights.

Zenawi has also supported $10bn per year short term funding from 2010-2012, in line with suggestions by the EU and the US.