Paper on climate financing targets fuel subsidies

AMSTERDAM (AP) ? A paper prepared by global financial institutions on how to mobilize funds to fight climate change recommends trimming subsidies for fossil fuels and putting a price on carbon emissions of $25 a ton.

The paper was prepared at the request of the G20 finance ministers by the International Monetary Fund, the World Bank and other international groups. It was leaked prematurely and distributed Wednesday by aid agencies.

The finance ministers of the world’s largest economies are responding to a commitment to channel $100 billion a year to developing countries by 2020 to help them adapt to global warming and develop low-carbon economies.

The paper said the starting point should be a review of fuel subsidies, which amount to $40 billion to $60 billion a year.