Wednesday, January 9, 2008

EU, World Bank eye loan for climate change fight

Wed 9 Jan 2008,

BRUSSELS, Jan 9 (Reuters) - The European Union and the World Bank are discussing raising a major long-term loan to help poorest countries fund essential measures to combat climate change, the EU's development chief said on Wednesday.
Industrialised countries would borrow the money on the international capital markets and advance it to developing states to help reduce their emissions of greenhouse gases and protect them from environmental damage, Development Commissioner Louis Michel told reporters. The size of the fund had not yet been discussed but it could involve the "colossal sums" needed to help poor countries fight against global warming, he said. "I don't agree to use existing development funds to finance the fight against climate change in the least developed countries," Michel said. "My aim is to create a global loan with the World Bank -- we are working with (World Bank President) Bob Zoellick -- to help the LDCs (Least Developed Countries) fight climate change."
Michel said rich countries would reimburse the loan over a long period, and some of that funding could be raised from the private sector through taxation or other levies. The EU wants to position itself in the vanguard of the fight against global warming and its impact. More >>>