Climate change poses a serious threat to global growth, the head of the International Monetary Fund said on Monday, urging the world’s top emitters to agree on a floor for carbon prices.
IMF Managing Director Kristalina Georgieva told finance ministers meeting on climate change that countries should also ensure that green investments are included in the money they are spending to contain the COVID-19 pandemic and mitigate its economic impact.
Doing so, she said, could boost global gross domestic product by 0.7% on average in the first 15 years of the recovery.
“Even while we are in the midst of the COVID crisis, we should mobilize to prevent the climate crisis,” Georgieva told a meeting of finance ministers from 52 countries working to integrate climate change into their economic policies.
The group, launched in April 2019 and led by the finance ministers of Chile and Finland, met virtually Monday on the sidelines of the annual meetings of the IMF and World Bank.
China and the United States, the world’s largest emitters of heat-trapping gases, are not part of the coalition. Together they account for 43% of the world’s emissions.