IMF Proposes Global Fund to Ease Climate Adaptation

>Though the science behind climate change projections has been taking a beating recently, one important institution is preparing for the worst. The International Monetary Fund is proposing a global climate adaptation fund as insurance for countries facing the disastrous consequences of a warming climate.

While the IMF has not historically crafted environmental policies, it has long been worrying about and planning for the macroeconomic and fiscal consequences of climate change. Temperature fluctuations could severely inhibit productivity, natural disasters could demand huge cash infusions, and permanent economic adaptation could require large up-front investment -- all developments that would involve the IMF.

In a paper that will be released later this week, the IMF models its scheme upon its own system of assigning member nations a quota based on their economic profiles. This quota determines countries' contributions, voting power, and access to financing. (Quota assignations were recently revised in order to better represent low-income countries and emerging markets.)

The World Bank predicts that adapting to climate change will cost $75 to $100 billion annually between 2010 and 2050. Much of this sum will be needed to help developing nations mitigate the droughts, floods, and famines that are expected to accompany higher global temperatures. In Copenhagen this December, a group of large nations floated a $100 billion annual fund by 2020 that would help poor countries manage these consequences. The IMF's proposal will provide much needed details to achieve this goal.

Presented by

Nicole Allan is a former senior editor at The Atlantic.

How to Cook Spaghetti Squash (and Why)

Cooking for yourself is one of the surest ways to eat well. Bestselling author Mark Bittman teaches James Hamblin the recipe that everyone is Googling.

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register.

blog comments powered by Disqus

Video

Before Tinder, a Tree

Looking for your soulmate? Write a letter to the "Bridegroom's Oak" in Germany.

Video

The Health Benefits of Going Outside

People spend too much time indoors. One solution: ecotherapy.

Video

Where High Tech Meets the 1950s

Why did Green Bank, West Virginia, ban wireless signals? For science.

Video

Yes, Quidditch Is Real

How J.K. Rowling's magical sport spread from Hogwarts to college campuses

Video

Would You Live in a Treehouse?

A treehouse can be an ideal office space, vacation rental, and way of reconnecting with your youth.

More in Business

Just In