The IMF has already secured over $40 billion to support vulnerable countries through our Resilience and Sustainability Trust
NEW DELHI, Sep 11 (The CONNECT) – Underscoring that “Our one and only earth” is threatened by existential climate change, International Monetary Fund Managing Director Kristalina Georgieva has called for raising the global ambition to decisively reduce emissions to prevent grave risks to economic wellbeing and macro-financial stability ahead of COP28.
Transforming this ambition into reality will require large investments both from the international community and the private sector, as well as an appropriate price for carbon, Georgieva said in a statement during the just concluded G20 Summit here.
Hailing the G20 Leaders New Delhi Declaration, she said G20 members must lead by example in delivering on the promises of $100 billion per year for climate finance, supported by strengthening the Multilateral Development Banks.
The IMF on its part has secured over $40 billion to support vulnerable countries through our Resilience and Sustainability Trust (RST) to build climate resilience. “At the same time, countries also need to mobilize domestic resources to finance and manage the green transition through tax reforms, effective and efficient public spending, strong fiscal institutions, and deep local debt markets,” she said.
The IMF is providing policy support and capacity development in collaboration with partners To help countries in this effort,.
The IMF chief congratulated Prime Minister Narendra Modi for his successful leadership of the G20. Leaders wholeheartedly embraced the theme of India’s Presidency of "One Earth, One Family, One Future” and conveyed a strong consensus for joint action to address global challenges in the New Delhi Declaration. She expressed her pleasure that the G20 welcomed the African Union as a permanent member.
“Our family of economies is gradually healing from a string of major shocks. But the recovery is slow and uneven, with medium-term growth prospects being the weakest in decades in an environment of still elevated inflation, high interest rates, and growing fragmentation. The risk of further divergence is real, with richer countries being more resilient to shocks and vulnerable emerging and low-income countries contending with limited buffers,” she said.
“Against this background, all countries should pursue sound policies to support economic and financial stability and growth-oriented structural reforms. This is especially important in emerging and developing countries, where such reforms can boost output by up to 8 percent over 4 years.
“We also need to further invest in international cooperation. This implies swiftly addressing debt problems where they arise, including through the G20 Common Framework and the new Global Sovereign Debt Roundtable.
“And I call on our members to strengthen the global financial safety net.Since the start of the pandemic, the IMF has injected $1 trillion in reserves and liquidity through lending to nearly 100 countries and the historic SDR allocation; and I thank our members who have helped us reach the goal of channeling $100 billion to vulnerable countries.