Climate change poses extraordinary threats to macroeconomic stability and global prosperity, and since the IMF’s purpose is to foster both objectives, its help in addressing these threats is central to its mandate. While the IMF is focusing on how to adapt its policy advice, a strong case can be made too for launching a new lending instrument: a Green Transition Facility.
CGD Policy Blogs
President Biden’s announced target to achieve a 50 percent reduction in greenhouse gas emissions within a decade is a tremendous boon to the Paris Climate Agreement goals. Without diminishing the positives of this reset of US policy, it is still important to remember that, with any seismic shift, there will be winners and losers. Recent research has discussed the emerging challenge of fossil fuel producing countries, which risk losing entire swathes of their economies’ production capacities, and thus their wealth.
The Biden Administration May Join the European Union in a Ban on Financing Fossil Fuels with Development Dollars. Poor Countries Must Be Exempt.
Since taking office, the Biden Administration has taken several steps to address the climate crisis and plans to do more on the international stage. This trend will be in line with an earlier move by the European Union to “stop funding oil, gas, and coal projects at the end of 2021, cutting €2bn (£1.7bn) of yearly investments.” But a blanket ban on fossil fuels is likely to stifle economic growth and make poor populations in Africa even more vulnerable to the impacts of climate change.
US president-elect Joe Biden has pledged to eliminate fossil fuels, domestically and globally. We look at the fiscal cost of those subsidies, which countries make most use of them overall, and how dirty are the fuels they subsidise. We look at political barriers and conclude with four reasons why reform can succeed in 2021.
As the world looks to recover from the economic crisis induced by COVID-19, there is an enormous opportunity to choose a “green” recovery—one that sets the stage for sustainable growth over the medium and long term.
While the world’s decision makers are now rightly focusing on the COVID-19 crisis and its potentially devastating economic aftermath, the climate change agenda has been moved from the center stage. As the world begins to rethink what the post COVID-19 economic order will look like, climate change will again play a key role. And so will the IMF.
These remarks were prepared for the Global Development Network (GDN) 2019 Conference, held in Bonn, Germany on October 23-24, 2019.
What would it look like today if major multilateral finance institutions like the World Bank had never adopted the climate agenda as a binding constraint on their operations? Unfortunately, we have a real-world approximation of that hypothetical in the form of Chinese development finance. At least, that’s a conclusion I draw from an important new report from World Resources Institute (WRI) and Boston University, Moving the Green Belt and Road Initiative: From Words to Actions.
What's going to happen in the world of development in 2018? Will we finally understand how to deal equitably with refugees and migrants? Or how technological progress can work for developing countries? Or what the impact of year two of the Trump Administration will be? Today’s podcast, our final episode of 2017, raises these questions and many more as a multitude of CGD scholars share their insights and hopes for the year ahead.