IMF Points Out That Significant Climate Finance Will Be Needed in the Coming Years

24 Sep 2022

The International Monetary Fund (IMF) pointed out that significant climate finance will be needed in the coming years.

IMF published the 2nd chapter of its Global Financial Stability Report titled "Increasing Private Climate Finance in Emerging Markets and Developing Economies: Challenges and Opportunities". The report emphasized that emerging market and developing economies account for two-thirds of global greenhouse gas emissions and that many of them are quite vulnerable to climate hazards. The report noted that if these economies are on track to achieve the target of net zero greenhouse gas emissions by 2050, investment needs for renewable energy alone could reach $1 trillion per year by 2030. The report stated that if efforts to reduce emissions fall behind the global temperature targets set by the Paris Agreement, the financing need for emerging markets and developing economies will increase sharply, and estimates vary between $520 billion and $1.75 trillion annually after 2050, depending on the course of emissions.

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