Managing Director of the International Monetary Fund Kristalina Georgieva estimates that countries around the world are not contributing enough to climate issues. The funds allocated for the environment nowadays do not exceed $900 million but the world needs to find $5 trillion for climate finance, the IMF chief said at the climate summit.
Currently, the community of environmentalists is trying to puzzle out whether decarbonization will remain a suspended project or will be implemented in practice. Indeed, the lack of funds and joint efforts is hampering the progress.
“We need to go from $900 million – where we are now to – $5 trillion to make decarbonization a reality and the question is: is $5 trillion a lot of money? Well, it’s obviously not a little but put $5 trillion next to $7.1 trillion direct and indirect subsidies, or next to the size of the world economy, which is over 100 trillion. I think we should be brave and say yes, it can be done,” Kristalina Georgieva delivered the keynote address at the Business and Philanthropy Forum on the sidelines of the UN Climate Conference (COP28) in Dubai.
Among other things, the decarbonization issue was the cornerstone at the 28th Conference to the UN Framework Convention on Climate Change (COP28). More than 160 state leaders participated in the high-profile event.
According to the IMF Managing Director, the $5 trillion funding will be provided faster if the private sector gets actively involved. In this scenario, financing will come from different sources. Kristalina Georgieva stated that fossil fuel subsidies stood at an impressive $1.3 trillion in 2022 thanks to support measures aimed at minimizing the cost of living crisis.