## Editor’s Letter — The Climate Issue

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**Canonical URL:** [Editor’s Letter — The Climate Issue](https://www.imf.org/-/media/files/publications/fandd/article/2021/september/editors-letter-climate-issue-bhatt.pdf)

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### On the cover
- Cover artwork: “Climate Change Is Real” by Nor Tijan Firdaus, composed of discarded electronic components, highlighting human impact on the environment.
- Issue occasion: Special climate issue published in partnership with the UN Climate Change Conference (COP26).
- Publication date: September 2021.

### Core assessment of the climate challenge
- Climate damage is accelerating: “The damage is becoming less gradual, and unless we take action, the world could suddenly reach an irreversible tipping point.”
- Scale of action required: “Roughly halving carbon emissions each decade through 2050.”
- Necessary systemic changes listed:
  - Rapid shift to renewables.
  - New electricity networks.
  - Greater energy efficiency.
  - Low-carbon transportation.
- Feasibility drivers: Cheaper renewable energy and technology advances make the move from carbon “affordable and feasible.”

### Policy approaches and solutions highlighted
- Contributors include academics, policymakers, private sector voices, and youth activists.
- Specific policy recommendations and emphases:
  - Kristalina Georgieva (IMF) recommends credible carbon pricing policies to encourage the use of green energy.
  - James Stock advocates a shift to sector-specific policies, such as low-carbon aviation fuel.
  - Amar Bhattacharya and Nicholas Stern identify concrete solutions that can generate massive opportunities for jobs and growth, driven by:
    - Stepped-up infrastructure investment.
    - Technological innovation.
    - Support from a dynamic private sector.

### Transition challenges and required actions
- Redistribution and compensation: The transition “will require compensating the workers and businesses that bear the cost of a green transition.”
- Political economy constraints: Breaking down political economy impediments is necessary for rapid progress.
- Multisector collaboration: Success depends on collaboration by citizens, governments, corporations, financial institutions, philanthropists, and the scientific community.
- International finance: World leaders must expand ambition and action, including mobilizing finance to help developing economies adapt to climate shocks.

### Optimistic framing and call to action
- The transition as an opportunity: There is “a path forward in what can become the inclusive growth story of the 21st century.”
- Final exhortation: “If we rally to reverse the climate threat, then we may suddenly have a net zero world in reach.”

*Gita Bhatt, Editor-in-Chief — Editor’s Letter, Finance & Development, September 2021*

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_Source: https://www.imf.org/-/media/files/publications/fandd/article/2021/september/editors-letter-climate-issue-bhatt.pdf_