"It will hit low-income countries soonest and hardest. Africa has contributed little to the carbon emissions that endanger our planet, but Africa is already paying the price. Without action, Africa will suffer more from drought, flooding, food shortages, and disease-possibly provoking further instability and conflict. We must take urgent action," he stated.

Strauss-Kahn pointed out that developing countries would require large-scale, long-term investments for climate change adaptation and mitigation, with the Copenhagen Accord suggesting that $100-billion a year in funds over and above current aid commitments would be required by 2020.

The IMF was not planning to manage the proposed green fund, but intended for this to make a significant contribution in the global debate and for consideration by the international community, he noted.

Strauss-Kahn explained that such a fund could provide a mechanism that could act as a bridge to large-scale carbon-based financing in the medium term.

While the United Nations High Level Advisory Group on Climate Change Financing was expected to start its work soon, this financing would be in the form of grants or highly concessional loans, which would require subsidies.

"Ultimately, these will have to come as budgetary transfers from developed countries, drawing on scaled-up carbon taxes and expanded carbon trading mechanisms. But these new revenue sources will take time to put in place. So we need an interim solution," said Strauss-Kahn.

He emphasised that the establishment of a green fund would take major political effort, but said that the payoff would be "enormous" for Africa and the world.

Meanwhile, Strauss-Kahn forecast the African economy to grow by 4,5 percent this year. He noted that "signs of life" could be seen across the continent, with rebounds in trade, export earnings, bank credit and commercial activity.

He cautioned, however, that while economies on the continent were seeing improved conditions, a lot still depended on the global economic recovery, which was still at an early stage.

Strauss-Kahn praised the African countries that had implemented good economic policies before the start of the global economic downturn, saying that this had inoculated these countries against a more severe downturn.

"Because debt positions had improved dramatically, many countries were able to use the budget to counteract the crisis, rather than making it worse. They strived to preserve, and sometimes even increase, public spending, at a time when revenue was falling rapidly. Fiscal policy was appropriately countercyclical in two-thirds of sub-Saharan African countries in 2009," he commented.