IMF PLANNING $111BILLION GREEN FUND
01 febrero 2010
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Published by BigPond News
The IMF is working on a $111 billion Green Fund to help countries cope with the effects of climate change.
The IMF is working to create a $US100 billion ($A111.78 billion) Green Fund to help countries mitigate the effects of climate change, the agency said on its website.
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.'
Special drawing rights are an international reserve asset created by the IMF in 1969 as a supplement to member states' official reserves. They can be exchanged for common currencies.
The IMF said in a statement late Saturday that it would issue a paper detailing ideas on how the fund would be financed.
The IMF is working on a $111 billion Green Fund to help countries cope with the effects of climate change.
The IMF is working to create a $US100 billion ($A111.78 billion) Green Fund to help countries mitigate the effects of climate change, the agency said on its website.
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.'
Special drawing rights are an international reserve asset created by the IMF in 1969 as a supplement to member states' official reserves. They can be exchanged for common currencies.
The IMF said in a statement late Saturday that it would issue a paper detailing ideas on how the fund would be financed.
