Remarks by IMF Managing Director Kristalina Georgieva at the 2024 ESG Global Leaders Conference

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Oct 28, 2024, 05:19 ET

SHANGHAI, Oct. 28, 2024 /PRNewswire/ -- The 2024 ESG Global Leaders Conference took place in Shanghai from October 16 to 18, where Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), delivered a compelling speech on the critical need for global climate action.

Georgieva stated that to achieve the goal of "keep global warming well below 2 degrees Celsius," it is paramount to front-load action during this decade and cut global greenhouse gas emissions by 50 percent by 2030. Unfortunately, current pledges will only get us emissions cuts amounting to 12%. Therefore, she urged the need to set higher emission reduction targets for 2030 and ensure that the world has the necessary mechanisms to continuously and significantly cut emissions - by more than 7% annually over the next decade.

Georgieva indicated that emerging markets and developing economies need approximately two to three trillion dollars per year for climate action, with up to 90% of the necessary funds needing to come from the private sector. Therefore, to mobilize private sector funds on a large scale, countries must accelerate the necessary macroeconomic reforms to attract domestic and foreign investment. For example, they need to eliminate red tape, deepen and improve the functionality of domestic capital markets, and implement predictable climate policies to guide investors.

She also suggested gradually eliminating subsidies for fossil fuels and using the freed-up fiscal space for public investments in climate-related infrastructure and research and development activities, or to reduce risks for private investors.

She believed that one of the most important measures countries can take is to implement carbon pricing. It can create a level playing field for green technologies and encourage businesses and households to make low-carbon and energy-efficient choices. "The current global average carbon price of 5 per ton is too low. To effectively curb global warming, the global average carbon price should rise from 5 to at least $85 by the end of this decade," Georgieva said.

She also stated that China has always been firmly committed to achieving its climate goals. China has made rapid progress in achieving these goals, driven by robust policies, including the Emission Trading System (ETS) and emissions quota auctions. These policies can make it easier to achieve climate goals while also generating revenue to fund them. "I also want to recognize China's role in international cooperation. The IMF is very keen to work with all our member countries to support the establishment of a global carbon price floor, which will unite countries in encouraging decarbonization. We welcome cooperation with our Chinese colleagues on this matter."

"We have also established a long-term concessional lending instrument, the Resilience and Sustainability Trust (RST), which has mobilized $46 billion to support our member countries in implementing climate policies - and I would like to take this opportunity to thank China for its contribution to this trust," Georgieva said.

The 2024 ESG Global Leaders Conference was co-hosted by CITIC Group and Sina Group, and organized by Sina Finance and CITIC Press. Kweichow Moutai served as the Chief Strategic Partner, while China Construction Bank and Great Wall Motors were Strategic Partners.

SOURCE Sina