TWN Info Service on Finance and Development(Oct08/03)
please find an article from the Times of
refuses World Bank aid to fight climate change
In a stiff refusal, the environment ministry, the government's nodal agency on climate change issues, told the finance ministry that it was not interested in seeking funds from the World Bank to address challenges of climate change.
the Bank, observers suggested, the rejection could cause an embarrassment
in the international arena, where it would have wished to showcase broad-based
approval for its new initiative. A rebuff from
For the G8 countries, which had backed the Bank initiative by committing resources for it, the Indian snub would be seen as the failure of their climate diplomacy, sources pointed out.
The developed countries have shown little interest in such inter-governmental transfer of resources and have been quick to argue that "market-driven solutions" were far better in diffusing technology and money.
A proposal brought out by the G77 and China in talks in Ghana in August had demanded that a separate adaptation fund be created under the aegis of the UN Framework Convention on Climate Change (UNFCCC) — the global body and not any external agency — hinting at institutions like the World Bank.
environment ministry pointed out that the Bank fund was not democratically
run unlike the UN body where each country had a single vote. The opposition
to the Bank fund — which would at best be soft loans with some grants
built in — strengthens
Sources pointed out that while the environment ministry had rejected the overture, the Bank would have the option to talk directly to state level players and run "pilots".