SHANGHAI , Oct. 28, 2024 /PRNewswire/ -- The 2024 ESG Global Leaders Conference took place in Shanghai from October 16 to 18 , where Kristalina Georgieva , Managing Director of the International Monetary Fund (IMF), delivered a compelling speech on the critical need for global climate action. Georgieva stated that to achieve the goal of "keep global warming well below 2 degrees Celsius," it is paramount to front-load action during this decade and cut global greenhouse gas emissions by 50 percent by 2030.
Unfortunately, current pledges will only get us emissions cuts amounting to 12%. Therefore, she urged the need to set higher emission reduction targets for 2030 and ensure that the world has the necessary mechanisms to continuously and significantly cut emissions - by more than 7% annually over the next decade. Georgieva indicated that emerging markets and developing economies need approximately two to three trillion dollars per year for climate action, with up to 90% of the necessary funds needing to come from the private sector.
Therefore, to mobilize private sector funds on a large scale, countries must accelerate the necessary macroeconomic reforms to attract domestic and foreign investment. For example, they need to eliminate red tape, deepen and improve the functionality of domestic capital markets, and implement predictable climate policies to guide investors. She also suggested gradually eliminating subsidies for fossil fuels and using the freed-up fiscal space for .
