IMF plans $100b fund to help poor mitigate climate effect
Monday, 1 February 2010
DAVOS, Jan 31 (AFP) - The IMF is working to create a 100 billion dollar Green Fund to help countries mitigate the effects of climate change, the agency said on its website Sunday.
The managing director of the International Monetary Fund Dominique Strauss-Kahn told the Davos forum that it was necessary to "think out of the box" on the issue of funding since developing countries do not have the funds to pay for these mitigation measures.
Developed countries' ability to pay is also limited as they are now weighed down by state debt since funds have been used to deal with the financial crisis, noted Strauss-Kahn.
As a result, "we'll have to find innovative ways to finance it," he said.
"We're going to provide some ideas, built around a Green Fund devoted to finance 100 billion dollars a year which is the figure currently accepted for addressing the problem based on the capitalisation coming from central banks, backed by special drawing rights issued by the fund," he said.
The managing director of the International Monetary Fund Dominique Strauss-Kahn told the Davos forum that it was necessary to "think out of the box" on the issue of funding since developing countries do not have the funds to pay for these mitigation measures.
Developed countries' ability to pay is also limited as they are now weighed down by state debt since funds have been used to deal with the financial crisis, noted Strauss-Kahn.
As a result, "we'll have to find innovative ways to finance it," he said.
"We're going to provide some ideas, built around a Green Fund devoted to finance 100 billion dollars a year which is the figure currently accepted for addressing the problem based on the capitalisation coming from central banks, backed by special drawing rights issued by the fund," he said.