Short but sweet today. Following up on my last two messages to you to reveal the widening acceptance and understanding that we should learn and take advantage of our current circumstances regarding the COVID – 19 pandemic as relates to climate chaos. The two concepts to which I am referring are:
1. There is a connection from this pandemic to climate change.
2. Financial support given by governments and financial institutions to revive economic health should be used to accelerate a transition from fossil fuels energy and infrastructure to industries that will hasten the reduction of emissions of climate warming chemicals into our atmosphere.
This time, Bloomberg reports, the following message is coming from the Managing Director of the IMF (International Monetary Fund).
“With the world economy reeling from the fallout from the Covid-19 pandemic, nations must do all they can to promote a recovery that also fights against the climate-change crisis, International Monetary Fund Managing Director Kristalina Georgieva said.”
“The IMF also recommends a substantially higher carbon price to encourage climate-smart investment and accelerate the shift to cleaner fuels.”
“”Taking measures now to fight the climate crisis is not just a ‘nice-to-have,’ it is a ‘must-have’ if we are to leave a better world for our children,””
The drumbeat of this message is growing louder and more and more widespread. The IMF is simply one of the loud voices in a chorus that just keeps growing. Keep your eyes open for others.
Nations must promote ‘Green Recovery’ from virus — IMF
Thursday, April 30, 2020
With the world economy reeling from the fallout from the Covid-19 pandemic, nations must do all they can to promote a recovery that also fights against the climate-change crisis, International Monetary Fund Managing Director Kristalina Georgieva said.
“Taking measures now to fight the climate crisis is not just a ‘nice-to-have,’ it is a ‘must-have’ if we are to leave a better world for our children,” she said in prepared remarks delivered at the Petersberg Climate Dialogue yesterday.
The IMF’s fiscal affairs department recommends nations mandate commitments to reduce carbon emissions when they provide financial lifelines to companies that are carbon-intensive, adding that record-low oil prices make this an opportune time to phase out subsidies.
State guarantees can be used to mobilize private finance for green investment, the lender said. It must be mandatory for financial firms to better disclose climate risks in their lending portfolios, and the industry must find better ways of pricing in this risk, it said.
The IMF also recommends a substantially higher carbon price to encourage climate-smart investment and accelerate the shift to cleaner fuels.
“The current global carbon price is only $2 per ton, way below the levels needed to keep global warming under 2 degrees Celsius (35.6 degrees Fahrenheit), which we estimate to be $75 per ton,” Georgieva said. For the transition to be fair and growth-friendly, carbon-tax revenues can be used to provide upfront assistance to poorer households, lower burdensome taxes, and support investments in health, education, and infrastructure, she said. — Ana Monteiro, Bloomberg
