Kristalina Georgieva called at the G20Summit on combating climate crisis and poverty

Kristalina Georgieva، International Monetary Fund Managing Director، called during the G20Summit، on the group’s members to be an example in combating the climate crisis and poverty، stressing the need to increase the Fund’s quota resources before the end of the year، as well as urging the 20 member states to fulfill financing promises related to climate action and to set an example in fulfilling their promises to provide $100 billion annually in climate-related financing، with support from strengthening multilateral development banks.

The call for increased resources and financing for climate action

Kristalina Georgieva، International Monetary Fund Managing Director made the following statement today at the G20 Leaders’ Summit in New Delhi، India، including the call for increased resources and financing for climate action as the member  countries need to mobilize domestic resources to finance and manage the green transition through tax reforms، effective and effective public spending، strong financial institutions and strong domestic debt markets.

Kristalina Georgieva، International Monetary Fund Managing Director،  stated that، British Prime Minister Rishi Sunak pledged at the G20 Leaders’ Summit in New Delhi، India، that Britain would provide $2 billion to the Green Climate Fund to help  developing countries adapt to climate change.

The largest single financing commitment made by Britain

Kristalina Georgieva، International Monetary Fund Managing Director،  affirmed at the G20 Leaders’ Summit in New Delhi، India،  that Britain statement indicated that this pledge will be the largest single financing commitment made by Britain to date to help the world deal with climate change after creating the Green Climate Fund، the largest fund of its kind in the world، within the framework of the United Nations negotiations on climate change to help direct the funds that poor countries need to achieve their goals of reducing carbon emissions، developing cleaner energy sources، and adapting to global warming.

Kristalina Georgieva، International Monetary Fund Managing Director،  congratulated Prime Minister Narendra Modi for his successful leadership of the G20 Summit in New Delhi، India، as leaders wholeheartedly embraced the theme of India’s Presidency of "One Earth، One Family، One Future” and conveyed a strong consensus for joint action to address global challenges in the New Delhi Declaration.

Leaders of the G20 Summit welcomed the African Union as a permanent member

Kristalina Georgieva، International Monetary Fund Managing Director،  expressed her pleasure that the Leaders of the G20 Summit welcomed the African Union as a permanent member as te poor continent is threatened by existential climate change.

Kristalina Georgieva، International Monetary Fund Managing Director،  announced ahead of COP28، that it must raise ambition to decisively reduce emissions to prevent grave risks to economic wellbeing and macro-financial stability as transforming this ambition into reality will require large investments both from the international community and the private sector، as well as an appropriate price for carbon.

IMF secured over $40 billion to support vulnerable countries

 Kristalina Georgieva، International Monetary Fund Managing Director،  confirmed that over $40 billion have been secured to support vulnerable countries through the IMF Resilience and Sustainability Trust (RST) to build climate resilience.

Kristalina Georgieva، International Monetary Fund Managing Director،  added that the IMF is providing policy support and capacity development in collaboration with partners but countries also need at the same time، to mobilize domestic resources to finance and manage the green transition through tax reforms، effective and efficient public spending، strong fiscal institutions، and deep local debt markets. 

The world economy is gradually healing from a string of major shocks

Kristalina Georgieva، International Monetary Fund Managing Director،  indicated that the world economy is gradually healing from a string of major shocks but the recovery is slow and uneven، with medium-term growth prospects being the weakest in decades in an environment of still elevated inflation، high interest rates، and growing fragmentation، however، the risk of further divergence is real، with richer countries being more resilient to shocks and vulnerable emerging and low-income countries contending with limited buffers.

She sees that all countries should pursue sound policies to support economic and financial stability and growth-oriented structural reforms، in addition to climate change، as this is especially important in emerging and developing countries، where such reforms can boost output by up to % 8 percent over 4 years and it is a must to further invest in international cooperation. 

Kristalina Georgieva called on the members to strengthen the global financial safety net

Kristalina Georgieva also called on the members to strengthen the global financial safety net، as the IMF has injected since the start of the pandemic، $1 trillion in reserves and liquidity through lending to nearly 100 countries and the historic SDR allocation; and she thanked the members who have helped the Fund reach the goal of channeling $100 billion to vulnerable countries.

She revealed that it is vital to reach an agreement to increase the IMF’s quota resources before the end of the year and secure the needed resources for the Fund’s interest-free support to the poorest countries through the Poverty Reduction and Growth Trust to fight climahe change in order to make the global economy stronger and more resilient in a more shock-prone world.

Digital technology needed to build a prosperous future

Kristalina Georgieva explained that to build a prosperous future، it is necessary to harness the potential of digital technology and India's achievement in developing top-tier digital public infrastructure (DPI) stands as a beacon for others، but more work lies ahead، including in the realm of digital money and crypto assets and climate change.

She tries to achieve this end after the  G20 Summit has tasked relevant institutions to improve regulation and supervision of crypto assets and the IMF is contributing to proposals for a comprehensive policy framework; and advance the debate on how central bank digital currencies could impact the global economy and financial system especially for climate change.

India’s G20 presidency is a powerful reminder solve global problems

India’s G20 presidency is a powerful reminder that when the international community comes together to solve global problems، much can be accomplished and the IMF is playing its part، and enhancing cooperation with the World Bank in key areas as President Banga and she underscored in their joint statement  but further strengthening the bonds of international cooperation is needed to create a more prosperous and resilient global economy for all the world. 

Kristalina Georgieva، International Monetary Fund Managing Director،  considered that the climate-related results reached by the G20 countries during their Summit in India were  insufficient  calling for the need to set more ambitious goals to abandon oil as the final communiqué of the leaders of rich and emerging countries who gathered in New Delhi over the weekend did not call for a fossil fuel phase out، as many observers had hoped and deeply concerned about the mentality that has begun to prevail among the G20 member states regarding the climate issue، less than three months before the COP28 conference in Dubai next Nov. and Dec.