The shared message at the IMF’s seminar on getting to net zero was that the time to act is now. Multilateral institutions including IFIs are key contributors to the climate agenda, and working together to help shape debate on climate change is vital in assisting member countries to reach the goals set by the Paris Agreement.
Kristalina Georgieva, IMF Managing Director stressed that billions more must be invested in order to reach the targets set.
“If we are to reach the Paris agreement you started from. We as a world have to invest somewhere between three and $6 trillion a year. How much are we investing today? 630 billion. 5 to 10 times less than it is necessary. Secondly, the time they dimension. If we do not shift our trajectory this decade. We are cooked. And if you don't want to be cooked, then we should speed up,” said the Managing Director.
Kristalina Georgieva, IMF Managing Director called on institutions including the IMF to act now.
“Dealing with the climate crisis is a huge public good, and therefore we should not shy away of thinking how we use public money to remove obstacles for private money to move on the scale and in the timeframe that is necessary. And this is why I call on my friends here at the IMF our resilience, the sustainability trust. First and foremost has to serve as barrier removal for massive investment in mitigation and adaptation. In the developing emerging markets in developing countries. And with this I rest my case,” said Georgieva.
David Malpass, World Bank Group President stressed the need for action on climate change.
“We have to acknowledge that mankind is causing greenhouse gas emissions that are causing climate change and that it's a it's an actionable thing for this group, but for the whole world,” said Malpass.
As the world prepares for the COP 27 climate conference, Alok Sharma, President of COP 26 urged positive action, and the need for private sector investment.
“My view is that when it comes to climate, what we agreed in Paris, what we agreed in Glasgow after the baseline of our ambition, we cannot move from that. And what we then need is the Montreal system to go into COP 27 with hope and positivity. And I've seen that here at this meeting. I saw it at UNGA, I saw it at the cop that we've had in Kinshasa, and the MDB is the IFIs. I think I've got a really important role to play in terms of helping to mobilize the finance. None of this is possible without money,” said Sharma.
Nadia Calvino, First Deputy Prime Minister of Spain highlighted the need for technology alongside financial investment, in fighting the effects of climate change.
“Money cannot be the whole solution. I would think technology also needs to help. And I was thinking how working together we managed to have the vaccine to fight COVID in in a year's time, which was, you know, never expected. This was really something that all experts said this will take years. So when we get together and act in a coordinated manner and put sufficient money into it, we do achieve the technological change that is necessary to achieve our goals. So I think indeed the synergies between the different institutions,” said Calvino.
For more on the IMF’s work on climate change: https://www.imf.org/en/Topics/climate-change