World Bank could take charge of climate fund

The plans are being discussed at the United Nations climate talks in Cancun, which are entering their final days.

At the talks the race is on to reach agreement on issues including financial support for developing nations to deal with increasingly severe floods and droughts resulting from rising temperatures.

Last year's Copenhagen talks led to broad agreement for delivering £60 billion of such assistance by 2020 from private and public sources.

But rich nations are pushing for the World Bank to have a role in managing these funds.

Campaigners warned that the institution was not to be trusted with the money because it continues to support fossil fuel projects, insists on climate projects being funded by loans rather than grants and has a track record of imposing economic policies which increase inequality.

Their concerns were expressed in a letter to the conference signed by groups from around the world, including British-based ActionAid, Friends of the Earth, the Jubilee Debt Campaign and the World Development Movement (WDM).

WDM spokeswoman Kirsty Wright accused donor countries, in particular Britain, of "undemocratically imposing the World Bank into these talks."

"The current negotiating text goes further than the Copenhagen Accord by specifically inviting the World Bank to become the manager of climate finance.

"It's absolutely disgraceful, and we will resist this strongly."

The letter called for a global climate fund under the auspices of the UN which prioritises money for those who need it most, operates with full transparency and accountability and provides direct access to funding.

But a British government spokesman justified its position, claiming: "The World Bank has been playing a constructive role on climate change finance."

louise@peoples-press.com