A difference of opinion and corresponding debate is coming to the forefront regarding the management and funding of the “Green Climate Fund.” One view favors limiting role of private sector and multilateral financial institutions (World Bank & IMF) and grants over loans. The debate is taking place as the Durban Conference continues, with unfortunately low expectations. Green Climate Fund should not exacerbate developing countries’ debt burdens, “Climate finance should be provided in the form of grants and not loans. Climate loans will add to the existing external debt burdens of recipient countries, many of which simply do not have the capacity to repay further loans without undermining their already precarious development prospects,” according to UN Independent Expert on foreign debt and human rights Cephas Lumina. Climate loans could add to external debt burdens of poorer countries and could undermine already precarious development prospects. Green Fund Yet to be Funded/Launched: The Green Climate Fund was created during last year’s conference in Cancún, Mexico, to help developing nations protect themselves from climate impacts and build their own sustainable futures. The Fund though has yet to be launched. UNSG Ban Ki-moon called upon developed countries this week at the UN Climate Change Conference in Durban, South Africa, to inject the necessary capital to kick-start it. Read: - “Durban Conference Dims Environment Prospects” - diplomaticallyincorrect.org/films/blog_post/durban-conference-dims-environment-prospects-by-ambassador-mo/42095 How Much Influence World Bank, IMF & Commercial Lenders? Mr. Lumina encouraged that the Fund’s financing decisions should not be disproportionately influenced by the joint World Bank (WB) and International Monetary Fund (IMF) Debt Sustainability Framework (DSF), due to the history of the two multilateral creditors he urged the Fund adopts a “country-driven approach and promotes meaningful and effective participation of all stakeholders, including communities, farmers, workers, women and other marginalized groups. The DSF is biased by its very nature, is based on questionable growth assumptions and is concerned only with capacity to repay, not what the impacts of payments are.” During last year’s UN Climate Change Conference, countries decided to invite the World Bank to serve as interim trustee of the Green Climate Fund. However, this decision has sparked concern among climate change activists, human rights groups and some developing countries, which apparently Mr. Lumina was voicing: “The Bank should not have a central role in the new climate finance mechanism. Its problems with unsuccessful projects, history of forcefully encouraging developing countries to implement economic policies that have an adverse social impact, and its record of financial support for projects harmful to the environment that may have contributed to climate change, suggest that it may not be the most legitimate institution for managing and delivering climate finance.” Of course the World Bank has a different perspective and has been looking to project an environment friendly image and substance: diplomaticallyincorrect.org/films/movie/green-finance-world-bank/23887 Public or Private Sector Leadership – A Difference of Opinion? Mr. Lumina, who serves in an unpaid and independent capacity and reports to the Human Rights Council, also warned against the over-reliance on private capital as he said this would subordinate public interest to the unregulated pursuit of profit. “Climate finance is not as a matter of charity, and should be seen as a legal obligation under the UNFCCC and a moral responsibility on the part of those that have contributed the most to it.” Again, on the other side of the debate is apparently Christiana Figueres: Private sector investment is essential for ensuring a low-carbon future for poorer countries - “To get government and private capital flowing freely on this scale, the Green Climate Fund needs to become a trusted avenue for deploying climate funding to the best effect and it needs to offer a compelling route for private sector capital to engage in bigger climate investments in the developing world,” Read: -“Private Investment is Key in Climate Change Agenda” -http://diplomaticallyincorrect.org/films/blog_post/private-investment-is-key-in-climate-change-agenda-by-ambassador-mo/27801 The Effort to make “Green economy sustainable” has been at the forefront of the agenda of many pursuing climate change talks. The right blend of private public capital is now a point of debate. Read: -“Green Economy – Real Sustainable” - diplomaticallyincorrect.org/films/blog_post/green-economy-real-sustainable-by-ambassador-mo/42129 By Ambassador Muhamed Sacirbey Facebook – Become a Fan at “Diplomatically Incorrect” Twitter – Follow us at DiplomaticallyX More at “Ecology-Diplomat” Channel - diplomaticallyincorrect.org/c/ecology-diplomat