The head of the International Monetary Fund (IMF) said rich countries are falling short on their promised funding to help developing nations fight climate change in an interview with CNBC Monday, adding that pledges at the G7 summit earlier this year had not been sufficient.
According to IMF director Kristalina Georgieva, public assistance and finance from governments of affluent nations won’t be sufficient to fill the budget gap for climate change projects in poor countries.
The managing director of the International Monetary Fund stated that more private investments are required to assist poor nations in achieving their climate change goals.
Because it is too large to be closed with public funds, Georgieva told CNBC during an interview at the COP27 climate change meeting in Sharm el-Sheikh, Egypt, that “we will never close it if we rely on the charity of rich nations.”
The most crucial thing to do now and in the coming months is to work tirelessly to open up markets for private investments in the developing countries.
Prior to the meeting, the UN urged “enhanced financing and execution of initiatives” to support vulnerable countries in their efforts to cope with the climate emergency.
According to Inger Andersen, executive director of the United Nations Environment Programme, “Climate change is raining blow after blow onto mankind, as we saw throughout 2022.” She was referring to the terrible floods in Pakistan.
According to a UN estimate, vulnerable and developing nations would require between $160 billion and $340 billion by the end of the decade and up to $565 billion by 2050 to implement climate-related measures.
By 2030, the poor world’s adaptation demands are expected to soar, reaching up to $340 billion annually. But today, adaptation funding is less than a tenth of that, according to U.N. Secretary-General António Guterres.
“The most defenceless individuals and communities are suffering. It’s not acceptable.
The importance of fighting climate change in advanced nations
Georgieva stated that helping developing nations reach their climate change goals is in the interest of developed economies, noting stability as a major factor.
“If we continue to allow repeated climatic shocks to wreak havoc on developing nations, we contribute to the instability that Europe feels so keenly, especially as migratory flows rise,” she warned.
According to Georgieva, stability in emerging nations ensures commerce between developed and developing nations.
There must be wealth and stability in other nations, according to Georgieva, if you want to have your economy export to them.
According to her, pandemic risks may not even compare to supply chain disruptions brought on by climate change events.
The IMF director stated that more has to be done to hold firms in developed nations accountable for carbon reduction, and taxes and regulations are tools that many governments may employ.
“We must acknowledge that, in terms of ensuring the welfare of our children, we are well behind where we ought to be. In this decade, from 2020 to 2030, emissions must be reduced by between 25% and 50%, however they are continuously increasing, Georgieva continued.