March 11, 2010
London, 11 March: A climate fund proposed by the International Monetary Fund (IMF) to raise $100 billion a year by 2020 has won support from climate change economics guru Nicholas Stern.
Speaking in Nairobi on Sunday, IMF managing director Dominique Strauss-Kahn said: “Sustainable growth in developing countries will require large-scale, long-term investments for climate change adaptation and mitigation. The Copenhagen Accord suggests that $100 billion a year is needed by 2020, over and above existing aid commitments. This will be difficult to do with the standard approach – a series of ‘pledging conferences’ for decades to come.”
He said that, ultimately, financing will come from “budgetary transfers from developed countries, drawing on scaled-up carbon taxes and expanded carbon trading mechanisms”. However, these revenue sources will take time to be put in place, so an IMF ‘Green Fund’ could “act as a bridge to large-scale carbon-based financing in the medium term”.
In a subsequent interview with wire service AFP, Strauss-Kahn said that the IMF is going to publish a working paper on the Green Fund in the next couple of weeks. However, in the Nairobi speech, he stressed that the IMF would not manage the fund.
This article was posted: Friday, March 12, 2010 at 12:52 am