The World Bank on Tuesday agreed to establish two investment funds to help developing economies switch to clean-energy technologies to curb carbon emissions and help poor countries adapt to climate change.
The approval of the Clean Technology Fund and Strategic Climate Fund comes days before a summit of Group of Eight leaders from industrial countries in Hokkaido, Japan, on July 8 where climate change issues are on the agenda.
"The G8 is likely to broadly support the establishment of the climate investment funds," Warren Evans, director of the World Bank's environment department, told reporters.
He said the World Bank was counting on an initial $4 billion to $5 billion in donations by G8 nations for the Clean Technology Fund, adding that media reports that $10 billion would be raised for the fund "are on the high side".
Britain, Japan and the United States have already said they will contribute to the fund, while more countries are likely to climb aboard now that the funds have been approved.
No specific funding or donor commitments have been discussed for the adaptation fund, although Evans said he was confident the World Bank will be able to raise $500 million for programs.
"We would hope the funds are fully operational by the fourth quarter of this year, and that some projects are being approved by the end of the year," he said.
Evans said he was not overly concerned with the timing of the first contributions because it takes some time to put the projects together.
