Thursday 16 / May / 2024
Davos: Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), on Wednesday delivered a message during a WEF session dedicated to climate and nature.
Georgieva posted on X, "My message at today's @wef session on climate and nature: pull back on harmful fossil fuel subsidies and use those resources for climate action. With action, we can leave a heathy planet to our children and grandchildren. #wef24"
Georgieva called for a radical re-evaluation of global financial priorities, urging nations to withdraw support from harmful fossil fuel subsidies and redirect these resources toward effective climate action.
In her address, Georgieva brought attention to the staggering figure of USD 1.3 trillion spent on direct fossil fuel subsidies. She advocated for a strategic and immediate reallocation of these funds to support initiatives addressing climate change.
"Put it back to support climate action. We cannot accelerate decarbonization fast enough without pricing carbon, with a predictable increase of the carbon price. It has to be USD 85 by 2030," she asserted.
Georgieva argued that establishing a carbon price is paramount to accelerating the reduction of carbon emissions.
She set a target of $85 per tonne of carbon by the year 2030, emphasising the importance of having a predictable and increasing carbon price to drive meaningful change.
The IMF Managing Director presented a compelling economic perspective on the shift, stating, "If we just collect the equivalent of 25% of emissions today, priced, we would get about $800 billion. If we price 50% of emissions, we would get $1.5 trillion."
Her proposal aimed to transform financial resources currently contributing to environmental harm into a substantial financial pool dedicated to climate initiatives.
Georgieva concluded her message with a resounding call to action, emphasising the urgency of addressing climate challenges.
"So my point is let's get back to bringing resources, taking them from where they hurt, putting them where they help," she urged.
As the WEF continues, Georgieva's call for redirecting funds from fossil fuel subsidies to climate action adds momentum to the global discourse on sustainability and environmental responsibility.
Her insights contribute to the ongoing dialogue among leaders and stakeholders, emphasising the pivotal role of financial strategies in building a healthier planet for future generations.
