IMF chief Kristalina Georgieva told CNBC that public aid and funding from governments in developed countries alone will not be enough to close the funding gap for climate change initiatives in developing countries.
More private investment is needed to help developing countries meet their climate change targets, the managing director of the International Monetary Fund said.
“If we depend on the generosity of rich countries, we will never stop it, because it is too big to be close [sic] With people’s money,” Georgieva told CNBC during an interview at the COP27 climate change summit in Sharm el-Sheikh, Egypt.
“Most important here, and in the months ahead, is to work relentlessly to create opportunities for private investment in the developing world.”
Ahead of the summit, the UN called for “increased funding and implementation of action” to help vulnerable countries adapt to the climate emergency.
“Climate change is landing a hit on humanity, as we have seen throughout 2022,” said UN Environment Program Executive Director Inger Andersen, citing the devastating floods in Pakistan.
Vulnerable and developing countries will need between $160 billion and $340 billion by the end of the decade and $565 billion by 2050 to address climate-related changes, according to the UN report.
Public aid and funding from governments in developed countries alone will not be enough to close the funding gap for climate change initiatives in developing countries.
Sean Gallup | Getty Images News | Getty Images
“Adaptation needs in the developing world will rise to $340 billion a year by 2030. Yet adaptation support today is less than a tenth of that amount,” said UN Secretary-General Antonio Guterres.
“The most vulnerable people and communities are paying the price. This is unacceptable.”
Why developed countries should fight climate change
Helping developing countries meet their climate change targets is in the interest of advanced economies, Georgieva said, citing stability as a key factor.
“If we want to allow climate shocks, again and again, to destroy poor countries, we contribute to the instability that Europe feels very strongly, especially when migration flows increase,” he said.
Stabilization in developing countries also secures trade between developed and developing countries, Georgieva said.
“If you want to export your economy to these countries, there has to be prosperity and stability,” Georgieva said.
Disruptions to supply chains due to climate change events could pose greater risks than those posed by pandemics, he added.
More pressure needs to be put on developed countries to take responsibility for reducing emissions, and taxes and regulations are levers many governments can use, the IMF chief said.
“We have to admit that we are lagging behind where we should be to protect the well-being of our children. If you look at this decade – from 2020 to 2030 – we need to reduce emissions by 25% to 50% and emissions are still. Increasing,” Georgieva added. did