IMF Urges G20 to Lead in Climate Finance Commitments

IMF Urges G20 to Lead in Climate Finance Commitments. Image/https:/ Dailypioneer.com

IMF Managing Director Calls on G20 to Fulfill Climate Finance Promises

Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), has called on G20 member nations to lead by example in delivering on their commitments to provide $100 billion annually for climate finance. She emphasized the importance of reinforcing Multilateral Development Banks to support climate initiatives.

In a statement during the G20 Summit, Georgieva highlighted that the IMF has already secured more than $40 billion through its Resilience and Sustainability Trust (RST) to assist vulnerable countries in building climate resilience. However, she stressed that countries should also focus on mobilizing domestic resources to finance and manage the transition to a green economy. This can be achieved through tax reforms, efficient public spending, strong fiscal institutions, and the development of local debt markets.

Georgieva further urged all nations to adopt sound policies aimed at promoting economic and financial stability, as well as growth-oriented structural reforms. She noted that these reforms could significantly boost output, especially in emerging and developing countries, potentially increasing it by up to 8% over a span of four years.

While discussing the global economic situation, the IMF Managing Director expressed concerns about the slow and uneven recovery. She pointed out that the medium-term growth prospects are the weakest in decades. In addition, the global economy continues to grapple with persistent inflation, high-interest rates, and growing fragmentation.

To strengthen the global economy and enhance its resilience in a world prone to shocks, Georgieva emphasized the need to reach an agreement to increase the IMF’s quota resources before the year-end. She also highlighted the importance of securing the necessary resources for the Fund’s interest-free support to the world’s poorest countries through the Poverty Reduction and Growth Trust.

Georgieva praised India’s remarkable achievement in developing top-tier digital public infrastructure (DPI), which serves as a model for other nations. She underscored the significance of harnessing digital technology’s potential for a prosperous future.

Regarding digital currencies and crypto assets, the IMF Chief mentioned that the G20 has assigned relevant institutions the task of enhancing the regulation and supervision of crypto assets. The IMF is actively contributing to proposals for a comprehensive policy framework in this regard. Additionally, there is an ongoing debate about how central bank digital currencies could impact the global economy and financial system.

In her closing remarks, Georgieva commended India’s G20 presidency as a powerful reminder of the effectiveness of international collaboration in addressing global challenges and achieving significant accomplishments.