IMF Chief Urges G20 to Fulfil Climate Finance Pledges

Managing Director Kristalina Georgieva of the International Monetary Fund (IMF) called upon the G20 member nations to showcase leadership through actions in fulfilling their financing commitments for climate mitigation efforts.

Additionally, she urged them to support the Multilateral Development Banks, highlighting the need for a strong collective effort.

On Sunday, during her address at the closing session of the G20 Leaders' Summit in New Delhi, the Managing Director of the IMF disclosed that the institution has successfully managed to obtain a significant sum of $40 billion, specifically designated for the Resilience and Sustainability Trust.

This funding is aimed at assisting countries at risk, empowering them to strengthen their resilience to climate-related challenges.

The IMF chief expressed, "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."

Climate finance includes financial resources, investments, or funding mechanisms specifically directed toward projects, programs, and strategies designed to combat climate change.

This includes measures to reduce greenhouse gas emissions (mitigation) and strategies to cope with and minimise the effects of climate change (adaptation).

A significant milestone was achieved when developed countries jointly pledged to generate USD 100 billion per year in climate finance by 2020, during the 15th Conference of Parties (COP15) in Copenhagen in 2009.

This commitment was further solidified at COP16 in Cancun and was reaffirmed and extended to cover the period up to 2025 during the 21st Conference of Parties (COP21) in Paris.

This funding is intended to support climate-related efforts and actions in developing countries, with the ultimate aim of mitigating the effects of climate change and facilitating their adaptation to its impacts.

Georgieva remarked, "Our one and only earth is threatened by existential climate change." She further stated, "Ahead of COP28, we must raise ambition to decisively reduce emissions to prevent grave risks to economic wellbeing and macro-financial

stability."

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