$ 900m $ 5 tr To reach the necessary level of decarbonization, we need to go from around $900 million a year in mitigation investments to $5 trillion a year.
fossil fuel subsidies reached a record $1.3 trillion last year due to support measures introduced to address the cost-of-living crisis. If you add the indirect subsidies – those from environmental and health damage – the total goes up to $7.1 trillion. Third, we need to direct subsidies and public money where it can make a real difference: areas such as research and development, or infrastructure that facilitates rapid decarbonization. At the IMF, we don’t traditionally support subsidies, but we recognize that the urgency of decarbonization can provide justification. That takes me to the question of financing. To reach the necessary level of decar- bonization, we need to go from around $900 million a year in mitigation investments to $5 trillion a year … If we consider the sum of $5 trillion in the context of $7.1 trillion in direct and indirect subsidies, or in the context of the world economy of over $100 trillion, then we should be brave and say: yes, it can be done.
To succeed, we must bring in the private sector – to go faster and further, especially in the developing world where emissions are growing. We have already seen movement on blended finance – but we need to go faster. Private Money is already 40 per- cent of total climate finance, but it needs to reach between 80 percent and 90 percent. At the Fund, we are very happy to sup- port these efforts … We cannot succeed in the fight against climate change unless we work together. At the IMF, we are rapidly integrating climate into our work, starting with our policy engagement with our members. We consider mitigation for countries that are high polluters, adap- tation for those that are vulnerable, and transition for those that have large hydrocarbon sectors. We have integrated climate into our financial sector assessments – so we consider financial sec- tor risks related to climate change and advise our members how to manage these. And we are also very active on data – because good data helps make good decisions. … The IMF is a financial institution. We have created the $40 billion Resilience and Sustainability Trust, which has already approved programs for 11 countries … Faced by the climate crisis, we must choose to act with all the force we can muster to change the direction of our societies. We must do what is necessary. Keynote speech at the COP28 Business and Philanthropy Climate Forum, 2 December 2023
Æ KRISTALINA GEORGIEVA ÆçÞèéÖáÞãÖÂÚäçÜÞÚëÖÝÖè×ÚÚãâÖãÖÜÞãÜÙÞçÚØéäçäÛéÝÚÄãéÚçãÖéÞäãÖáÈäãÚéÖçîÁêãÙèÞãØÚ %ÎÝÚìÖè¾ÀÊäÛéÝÚÒäçáÙ½ÖãàÛçäâ #éä %ÞãØáêÙÞãÜéÝçÚÚâäãéÝèÖèÞãéÚçÞâåçÚèÞÙÚãéËçÚëÞäêèáî¿çÂÚäçÜÞÚëÖèÚçëÚÙÖèÀêçäåÚÖã¾äââÞèèÞäãëÞØÚåçÚèÞÙÚãéÛäç×êÙÜÚéÖãÙ ÝêâÖãçÚèäêçØÚèÖãÙØäââÞèèÞäãÚçÛäçÞãéÚçãÖéÞäãÖáØääåÚçÖéÞäãÝêâÖãÞéÖçÞÖãÖÞÙÖãÙØçÞèÞèçÚèåäãèÚÎÝÚ×ÚÜÖãÝÚçØÖçÚÚçÞãåê×áÞØèÚç - ëÞØÚÖèÖãÚãëÞçäãâÚãéÖáÚØäãäâÞèéÖééÝÚÒäçáÙ½ÖãàÞã %% ÎÝÚØäØÝÖÞçèéÝÚÂáä×Öá¾äââÞèèÞäãäã¼ÙÖåéÖéÞäãÖãÙéÝÚÐãÞéÚÙÉÖéÞäãè ÎÚØçÚéÖçîÂÚãÚçÖáąèÃÞÜÝÇÚëÚáËÖãÚáäãÃêâÖãÞéÖçÞÖãÁÞãÖãØÞãÜ @KGeorgieva : imf.org
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