Net zero goal calls for $5 trillion in annual green investments: IMF
International Monetary Fund (IMF).
In a blog, the IMF's Simon Black, Florence Jaumotte, and Prasad Ananthakrishnan argued that emerging and developing countries (EMDEs) need $2 trillion annually, a fivefold increase from 2020.
Even if advanced economies meet or somewhat exceed their promise to provide $100 billion a year, the bulk of the financing for these low-carbon investments will need to come from the private sector, they argued.
«Eight years on from the Paris Agreement, policies remain insufficient to stabilise temperatures and avoid the worst effects of climate change.
Collectively, we are not cutting emissions fast enough and are falling short on the needed investment, financing, and technology,» the IMF blog noted.
The IMF guidance comes just ahead of the COP28 meeting to be held in Dubai, where policymakers and governments will converge to chalk out future strategies for climate mitigation.
The 2023 United Nations Climate Change Conference or Conference of the Parties of the UNFCCC, more commonly referred to as COP28, will be the 28th United Nations Climate Change Conference, which will be held from November 30 until December 12, 2023, in Dubai.
In its blog, authored by three IMF officials, they said their analysis showed that the private sector share of climate finance must rise from 40 per cent to 90 per cent of the total in emerging and developing countries by 2030.
«That means a broad mix of policies to overcome barriers such as foreign exchange and policy risks, underdeveloped capital markets, and too few investable projects,» the blog read.
Of the 50 per cent cut to emissions needed by 2030 to stay on track for the 1.5-degree target, more than 80 per cent can be achieved from technologies
