AUSTRALIA will face renewed pressure to commit funds to help poor nations tackle climate change. Leaked European Union documents show it is set to announce a multibillion-dollar plan to shape a proposed Copenhagen treaty.

The draft EU proposal, obtained by The Age, will be discussed by EU finance ministers in Luxembourg this week. It estimates wealthy governments must commit 5 billion to 7 billion euros a year until 2012 to help the developing world cut emissions.

The total cost would rise to about 100 billion euros in 2020. Governments would be expected to commit up to half, with the rest to come from business investment and international carbon markets.

The proposal reflects a widespread understanding that a climate finance plan is vital if a global deal to cut greenhouse gas emissions is to be made in the Danish capital seven weeks from now.

The Australian Government faces growing criticism from environment and welfare groups over its silence on how much it would contribute.

Prime Minister Kevin Rudd has acknowledged that wealthy countries must pay for a deal to be struck, but Australian delegates at climate talks have emphasised the importance of using revenue from carbon markets.

The draft EU statement warns that finance commitments must be ''fast-started'' with money from wealthy countries under the Kyoto Protocol, which expires in 2012.

World Vision chief executive Tim Costello said Copenhagen would be a ''train wreck'' unless developed countries made a financial commitment. Only Britain, which called on wealthy governments to give 30 billion euros by 2020, has put forward a significant proposal.

World Vision estimates Australia's commitment needs to rise by up to $3.5 billion a year by 2020 for it to play its part.

''There needs to be some serious money on the table by next year. It is actually in our self-interest to show we're serious about financing developing countries to get them into a deal,'' Mr Costello said.

Climate Institute policy director Erwin Jackson said the Government's credibility at climate talks was diminishing.

''Australia is failing to address the key political roadblock in the talks - how to unlock the scale of public sector financing needed,'' he said. ''Both the Coalition and the Government continue their silence on financing mechanisms. This is a huge credibility deficit for both when they claim to be serious about wanting a global agreement.''

The EU proposal stresses the need for a global emissions trading scheme to cover aviation and shipping. The Climate Institute estimates Australia could raise $290 million to $410 million a year from airlines and shipping companies.

A spokeswoman for Climate Change Minister Penny Wong said financing was critical to securing an effective political agreement in Copenhagen, and making the deal was clearly in the national interest.

''The Government is actively engaged, through the G20 process and UN negotiations, in developing a credible approach to climate change financing,'' she said.

''We recognise that financing to reach the scale needed will have to come from a number of sources including both the public and private sector.''