## NO TIME TO WASTE

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**Canonical URL:** [NO TIME TO WASTE](https://www.imf.org/-/media/files/publications/fandd/article/2021/september/kristalina-georgieva-climate-issue.pdf)

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### Overview
- Art can connect us with what we know and inspire action; the cover by Nor Tijan Firdaus depicts consequences of changing climate, biodiversity loss, and environmental degradation.
- Recent polls show increasing awareness of climate change, especially among young people:
  - A majority consider it a global emergency—well above half in middle-income and least developed countries, and nearly three-quarters among people in small island states and high-income countries.
  - The COVID-19 pandemic has heightened concerns: 43 percent are more worried about climate change now.
- Breakthroughs in science and technology (COVID-19 vaccines in record time) demonstrate the potential for rapid innovation and action needed for low-carbon technologies.
- Governments have shown they can take unprecedented action when needed; similar determination is required for climate change.

### Market signals and carbon pricing
- Eliminate all fossil fuel subsidies—equivalent to more than $5 trillion annually.
- Robust carbon pricing is essential to redirect private investment and innovation to clean technologies and encourage energy efficiency.
- Numeric targets and comparisons:
  - Average global carbon price should reach $75 per ton by 2030, up from today’s $3 per ton.
- Policy suggestion:
  - Major emitters agreeing on an international carbon price floor would be a good start.

### Scaling up green investment and economic impact
- IMF staff research projects that green supply policies could raise global GDP by about 2 percent this decade and create millions of new jobs.
- Investment composition:
  - On average, about 30 percent of new investment is expected from public sources, making it vital to mobilize private financing for the remainder.

### Just transition and international support
- A “just transition’’ requires measures within and across countries to protect workers and communities in affected high-emission sectors.
- Use of carbon pricing revenues:
  - Revenues can be used for cash transfers, social safety nets, retraining, and compensation for workers and businesses in affected sectors.
  - Examples of policy approaches: Germany’s national emissions trading system and the EU’s planned Just Transition Mechanism.
- International equity and finance:
  - The world’s poorest countries have contributed the least to climate change, are most vulnerable to its effects, and least able to cover the cost of adaptation.
  - With many of the lowest-cost mitigation opportunities in emerging market and developing economies, it is in the global interest that developed economies fulfill their commitment to provide $100 billion a year in climate finance for the developing world.
- Technology transfer and financial support across countries are required.

### Call to action
- There is no time to waste. As COP26 approaches, decisive collective action is required.
- Key premise: We know what must be done; now we must do.

*KRISTALINA GEORGIEVA is managing director of the IMF.*

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_Source: https://www.imf.org/-/media/files/publications/fandd/article/2021/september/kristalina-georgieva-climate-issue.pdf_