If you haven't seen it yet, the proposal is to allocate $100 billion of Special Drawing Rights to a new Green Fund that would be used to leverage those funds to support $1 trillion of bonds over 30 years. Basically it's an interesting way to engineer rich country guarantees, via SDRs, for developing nation projects.
Objectives, as they put it, would be to:
- create a coordinating, commitment, and burden-sharing mechanism for developed countries to contribute to financing developing countries' climate change needs;
- mobilize resources on a large scale, commensurate with the Copenhagen Accord, by using official funds to leverage private financing; and
- begin channeling loans and grants to developing countries from day one, while long-term revenue sources are being developed.
The paper doesn't tackle the issue of how resources would be disbursed to developing countries; it leaves the development of appropriate disbursement and governance processes to a separate process.
The Climate Bonds Initiative has proposed that Copenhagen Accord funds be allocated to a guarantee pool; The IMF staff proposal is one take on that idea.