IMF calls for scaling up Climate Finance

(IMF, Luxembourg, 1 February 2023) IMF Deputy Managing Director Bo Li at the EIB Group Forum 2023 spoke to the importance of the green transition - "away from fossil fuels that are subject to supply disruptions and volatility, and towards renewables such as wind and solar energy.  The growing impact of global warming reminds us of the urgency. From heatwaves in Europe and wildfires in North America, to droughts in Africa and floods in Asia: last year saw climate disasters on all five continents." He noted that without decisive action, things are set to get worse because "we are clearly not on the right trajectory for cutting global emissions and need to cut global emissions by 25‑50 percent by 2030 compared to pre-2019 levels to contain temperature rises to between 1.5 and 2 degrees celsius. Financing needed to meet adaptation and mitigation goals are estimated at trillions of US dollars annually until 2050 but so far, we are seeing only around 630 billion dollars a year in climate finance across the whole world—with only a fraction going to developing countries. This is particularly concerning—because emerging and developing economies have vast needs for climate finance. And it underlines why it’s so important for advanced economies to meet or exceed the pledge of providing $100 billion per year in climate finance for developing countries. This is not just the right thing to do, it is the smart thing to do."