catalyse climate-friendly investment through three key channels. First, it is underpinned by a traditional IMF programme that ensures solid macroeconomic fundamentals and debt sustainability. Second, it signals the authorities’ commitment to enhance climate policies. All disburse- ments are linked to the successful implementation of high-quality insti- tutional and policy reforms that address climate change. Third, the IMF, World Bank and other partners provide extensive capacity develop- ment to help implement the reforms and strengthen domestic institutions. Finally, the RSF often provides impetus for discussions on catalysing additional climate finance between governments, multilateral institutions and private investors. Supporting change globally What types of reforms have been implemented so far? Rwanda and Sen- egal embedded climate considerations into public investment management. Kosovo levelled the playing field for private investment in renewable electricity generation. Jamaica and Barbados introduced incentives for energy efficiency in government build-
ings. Morocco eliminated subsidies on butane gas while expanding cash transfers to affected farmers. Paraguay strengthened the governance frame- work to reduce deforestation. Costa Rica advanced its financial supervision framework to account for climate risks. Close collaboration among coun- try authorities, international partners, donors and the private sector is neces- sary to create a conducive environment for public and private investments. This is especially important for developing countries facing decades-high debt ser- vicing costs. Increasing the financing provided by multilateral institutions is critical, including by increasing the rechannelling of special drawing rights to the RSF to satisfy medium-term demand for the facility. In parallel, work should continue to reduce debt servic- ing burdens in vulnerable countries, including through debt swaps and debt buybacks with official multilateral or bilateral guarantees. It is not going to be easy. Financing a just transition is a complex task that requires cooperation, innovation and commitment from all stakeholders. By working together, we can unlock the potential for a greener, more resilient world that benefits everyone.
$48bn As of October 2024, 23 countries have pledged over $48 billion to the Resilience and Sustainability Trust 20 Since June 2024 20 arrangements have already been approved by the IMF Executive Board
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