Climate Risks Are Macro Critical

Climate Risks Are Macro Critical Climate risks are macro critical, hitting economies, communities and households, and they can cause financial instability, Kristalina Georgieva told a session at the UN Climate Change, or COP28. Global commitments for this decade add up to a cut in emissions of carbon and other greenhouse gases of just 11 percent, well below the cuts of between 25 percent and 50 percent needed to limit global warming to 1.5 degrees Celsius by 2050, IMF research shows. “We believe that with a strong package of measures—including a carbon price, elimination of harmful subsidies, and policy support to accelerate decarbonization—we can still have the impact we need by 2030,” Georgieva told a forum of business leaders at the conference in Dubai. Also read the managing director’s conversation with World Bank president Ajay Banga about climate cooperation, remarks on carbon pricing, and a joint article for the Financial Times (paywall) on carbon markets with European Commission president Ursula von der Leyen and WTO director-general Ngozi Okonjo-Iweala. See more IMF blogs, remarks, videos and other content from COP28 covering the Paris Agreement, climate finance, green growth, and much more at our dedicated website and YouTube (https://www.youtube.com/playlist?list=PLmYAE4wV1YQzIE0aYPS-eDu_CkQ-mfTVa) channel.