. confronting these unprecedented challenges requires an institution that enjoys strong governance and the full support of its membership. the voice reform effort aims to ensure that both of these conditions are met. in this endeavor, the bank, as a truly global institution, needs to reach out to all its members countries – borrowers and donors alike – ensuring equitable representation and a strong capital base. to achieve this goal, the bank ’ s governance structure must be aligned with its characterization as a global multilateral financial institution, reassuring capital markets that its commitments are backed by high - grade callable resources and that its products address development needs otherwise unmet. today, important steps are being taken to meet these conditions, and we trust president zoellick to successfully steer the institution in the direction that the wbg ’ s global membership has indicated and endorsed at this meeting.

unmitigated climate change and its budgetary implications are potentially significant for advanced, emerging, and developing countries alike. • finally, environmental protection offers an opportunity for growth, not an obstacle to development. this principle should underpin economic policies in advanced and developing countries, as well as development assistance, whether bilateral or multilateral. the role of the world bank in fighting climate change as an international organization, the world bank is well - positioned to face the challenges of combating the effects of climate change as they relate to “ global public goods. ” as a financial institution, it is well suited to address the intergenerational problems that climate change poses. finally, as a multisectoral development agency, the bank can make use of its expertise in many policy areas and engage clients in fruitful dialogue, providing an extensive menu of customized policy options. we particularly welcome the emphasis placed by the strategic framework on market - based instruments and energy efficiency. in particular, well - functioning and more integrated carbon markets are not only cost - effective environmental tools, they also have the potential to foster a more cooperative stance by developing countries by providing new incentives for them to join mitigation efforts and support innovative technologies. both italy and the european union are leaders in pioneering market - based instruments to address climate change. the european trading system, while still in its early stages and with ample scope for improvement, is the world ’ s first trading scheme in operation. its success has provided a benchmark for the introduction of similar schemes worldwide. the bank can contribute positively to the promotion of more liquid and integrated carbon markets and help clients reap the gains that will result from an increased demand for environmental protection. as regards energy efficiency, we believe that policy dialogue has the potential to generate benefits for both industrialized and developing countries. the bank traditionally has a comparative advantage in the area of energy sector reform as it can help clients pursue sustainable energy policies, establish sound regulatory systems that may mobilize additional private sector resources, and ease the financial challenges posed by climate change. enhancing voice and participation of developing and transition countries we welcome the proposed sequential approach to enhancing “ voice ” within the world bank group. the proposal of a single package that envisages different milestones will accelerate the voice reform process, a process that will add to the bank ’ s legitimacy and credibility by increasing the representation of its poorest members. we also believe that the world bank group will benefit from early adoption of those measures that already meet with broad