G20 members must lead by example on promises of climate finance: IMF chief

New Delhi: G20 members must lead by example in delivering on the promises on financing they made for the cause of climate mitigation, besides supporting the strengthening of Multilateral Development Banks, said International Monetary Fund (IMF) Managing Director Kristalina Georgieva.

Speaking at the concluding session of the G20 Leaders’ Summit in New Delhi on Sunday, the IMF chief said it has so far secured USD 40 billion to support vulnerable countries through Resilience and Sustainability Trust to build climate resilience.

Climate finance typically refers to any financing that seeks to support mitigation and adaptation actions that will address climate change.

At the 15th Conference of Parties (COP15) in Copenhagen in 2009, developed countries had collectively committed to mobilising USD 100 billion per year by 2020 for climate action in developing countries. The goal was formalised at COP16 in Cancun, and at COP21 in Paris, it was reiterated and extended to 2025.

“Our one and only earth is threatened by existential climate change. Ahead of COP28, we must raise ambition to decisively reduce emissions to prevent grave risks to economic wellbeing and macro-financial stability,” she said. Excerpts of her statement were made available on IMF website.

She further noted that transforming the ambition into reality will require large investments both from the international community and the private sector, as well as an appropriate price for carbon.

“G20 members must lead by example in delivering on the promises of USD 100 billion per year for climate finance, supported by strengthening the Multilateral Development Banks,” Georgieva said.

The IMF Director said she requested countries to mobilize domestic resources to finance and manage the green transition through tax reforms, effective and efficient public spending, and strong fiscal institutions.