AT a seminar on reaching net zero at the IMF/World Bank annual meetings, panellist after panellist gave their homespun analyses on climate change and climate action.
Alok Sharma, President COP26, wants climate change and climate action to be embedded into the purpose of multilateral development banks (MDBs) and international financial institutions (IFIs) that were created decades ago.
How to achieve climate goals? “Achieving the climate goals set under the Paris Agreement requires an investment of between $3 trillion and $6 trillion per year. But current investment stands at $630 billion—five to 10 times less than what is necessary,” says Sharma.
Kristalina Georgieva, Managing Director of the IMF, said it has become imperative for all hands to be on deck to meet the target. She cautioned that “if we do not shift our trajectory this decade, we are cooked.”
For Mathias Cormann, Secretary-General of the Organisation for Economic Co-operation and Development (OECD), synergy between global, regional, and national actors is essential to fight climate crises, but nothing is possible without climate financing.