Momentum continues to build for the creation of a “Clean Technology Fund” that would provide financial support “to assist developing countries in transitioning to low carbon economies.” Championed by the U.S., the U.K., and Japan, and likely to be managed by the World Bank, the fund may total US$5.5 billion, based on current commitments from G8 countries. World Bank President Robert Zoellick projects that the fund could be finalized at the G8 summit in July, according to Reuters.

In the contentious global climate negotiations, a Clean Technology Fund could be seen as a “win-win” for both developing countries and for brokers of clean technologies. Technology transfer and financing is a central theme of the second meeting of the Ad Hoc Working Group on Long-Term Cooperative Action to support the Bali Roadmap, which convened this week in Bonn, Germany. Delegates emphasized the role of technological responses to mitigate and adapt to climate change, the need for “innovative funding mechanisms,” and the possibility of establishing a multilateral fund.

While unlikely to derail the development of the Fund, during a hearing today convened by a Subcommittee of the US House Committee on Financial Services, Congressmen and environmental groups raised some concerns about the Fund’s structure and questioned whether the World Bank was the appropriate fund manager. Read the rest of this entry »

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