Spend money to aid economy on climate: U.N. official

By Gerard Wynn

MONACO (Reuters) - Governments should use public money aimed at deflecting the threat of recession to spur savings by backing energy efficiency too, the head of the United Nations Environment Programme, Achim Steiner, said.

UNEP is hosting 154-nation climate change talks this week in Monaco aimed at show-casing the need for government investment in the fight against climate change.

It is the biggest climate meeting since nearly 200 countries agreed in December in Bali, Indonesia, to launch talks on a new pact to fight global warming to succeed or extend the Kyoto Protocol after 2012.

"How can some of the economic stimulus now being considered be used for win-wins?" Achim said to reporters on Wednesday.

"Could some of the funds be spent on phasing in renewable energy?"

U.S. President George W. Bush last week signed into law a $168 billion economic stimulus package including billions of dollars in tax rebates and incentives for businesses to buy new equipment. The aim is to prop up market confidence after failing mortgage repayments fed a cycle of credit pullbacks by lenders.

Renewable energy and efficiency technologies are seen as central to the future of the world's economy, to fight climate change caused by burning fossil fuels and safeguard future energy supplies while saving money at a time of spiraling oil prices.

USING MARKETS AND FINANCE