WASHINGTON, April 11 The leaders of the
International Monetary Fund, World Bank and United Nations on
Friday called upon finance ministers to use fiscal policies,
such as carbon taxes, to combat climate change.
IMF Managing Director Christine Lagarde and World Bank
President Jim Yong Kim were joined by U.N. Secretary General Ban
Ki-Moon at their 2014 spring meetings to address a group of 46
finance ministers and senior officials on policies to reduce
greenhouse gas emissions.
Lagarde said their goal was to explain to ministers and
officials what fiscal tools they can use that would benefit the
environment while stimulating global economies.
She said she would discuss how to shift taxation from the
traditional labor and investment base "to a base that is
environmentally correct," she told reporters ahead of the
Lagarde said carbon taxes and removing fossil fuel subsidies
are "intelligent" ways to reallocate resources to benefit the
Last March, the IMF published a report making the case for
energy subsidy reform, which it estimated amounted to upwards of
World Bank President Kim said climate change threatens the
economic growth of the world's poorest countries and will
require financial policies that may be tough to find support in
"Even though it's controversial we've got to tackle the
issue of carbon pricing," he told reporters.
U.N. Secretary General Ban-Ki Moon, who has prioritized
climate change as a key issue amid a crowded portfolio of global
crises, told the gathering of ministers that they have a
"catalytic role to play" to shape a new financial model that
promotes sustainable development and climate resilience.
Ban called on finance ministers and private investors to
hold a meeting in the coming months that "could pave the way for
a common approach" and make low-carbon investments more
attractive to institutional investors.
On Sept. 23, he will host a summit at the U.N. headquarters
in New York for heads of state, high-level ministers and
business and NGO leaders to address measures to catalyze action
on climate change.
The meeting is aimed at ensuring a successful outcome from
pivotal UN climate change treaty negotiations in Paris in 2015.
Ban said he wants ministers to come up with ideas before the
September summit for capitalizing a U.N.-proposed Green Climate
Fund that aims to raise $100 billion to help the world's poorest
countries combat and adapt to the impacts of climate change by
(Reporting By Valerie Volcovici; Editing by Sandra Maler)