IMF Suggests How to Raise Climate Change Funds

IMF proposed countries adopt a quota system to raise money needed for climate change according to its members' economic sizes

IMF Managing Director Dominique Strauss-Kahn suggested on Mar.8 that countries adopt a quota system to raise money according to its shares in IMF, Xinhua reported.

He proposed that countries adopt a quota system similar to the on the Fund uses to raise its own money from its 185 members, which could bring in money faster than other methods.

"We all know that (carbon taxes and other fundraising methods) will take time and we don't have this time. So we need something which looks like an interim solution, which will bridge the gap between now and the time when those carbon taxes will be big enough to solve the problem," Strauss-Kahn said. He added that the proposal may help efforts to reach a binding agreement on climate change later this year.

He only provided a broad outline of the plan, as the organization will release a paper within 10 days with full details. An estimated 100 billion U.S. dollars will be needed by 2020 to deal with problems expected to be caused by climate change, including droughts, flooding and food shortages, said Kahn.

Nations failed to reach a binding deal in Copenhagen last Dec. and later this year, more than 190 nations will reconvene in Cancun, Mexico for another attempt to reach a new agreement.

Full article in Chinese: http://www.bocvip.com/2010-03-09/110392547.html