COP27
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IMF participation and objectives
- The IMF is participating in COP27 to foster dialogue and build support for climate action among IMF member countries based on macroeconomic and financial stability imperatives.
- The IMF's role focuses on areas where fiscal and macroeconomic policies are an important component of the appropriate policy response to climate change.
Recent IMF climate work and outputs
- Recent Climate Work
- Staff Climate Notes
- IMF Podcasts on Climate
- IMFBlog: How to Scale Up Private Climate Finance in Emerging Economies
- IMFBlog: Further Delaying Climate Policies Will Hurt Economic Growth
- F&D Magazine: New Energy Imperative
- Climate Change and Chronic Food Insecurity in Sub-Saharan Africa
- Feeling the Heat: Adapting to Climate Change in the Middle East and Central Asia
- Launched a new Climate Change Indicators Dashboard last year in collaboration with partners including the OECD, the World Bank, the UN, and the European Commission (EC).
- In the context of the allocation of $650 billion of SDRs, the IMF created a Resilience and Sustainability Trust to support long-term structural transformation.
Surveillance, assessments, and incorporation into IMF work
- Containing global warming (climate mitigation) is analyzed through multilateral surveillance because no country can address this issue on its own.
- For the 20 largest emitters, the IMF now strongly encourages coverage of mitigation policies in Article IV consultations (annual reviews of the health of a country's economy).
- Article IV surveillance will also seek to cover adaptation in countries that are especially vulnerable to climate change.
- Managing the transition to a low-carbon economy will be a topic for Article IV consultations, including for countries heavily dependent on fossil fuel production.
- Several Fiscal Stability Assessment Programs (FSAPs) have already started to examine physical and transition risks through climate risk assessments.
- Completed climate stress testing in two FSAPs: Norway and the Philippines.
- Work is progressing in three additional FSAPs: Colombia, South Africa, and the United Kingdom.
- Assessment of supervisory frameworks will start considering climate risk in the near future.
- Climate change issues are integrated into IMF flagship publications: World Economic Outlook, Global Financial Stability Report, Fiscal Monitor, Regional Economic Outlook, and Staff Climate Notes.
Analytical themes and policy focus
- Major analytic and policy themes the IMF has focused on include:
- How to scale up private climate finance in emerging economies.
- The urgency of the green transition, with emphasis that the higher the delay, the higher the cost.
- Making a case for stress testing to climate risks and promoting climate-related disclosures.
- Highlighting the economic impact of climate change and its policy implications on low-income countries, and on sub-Saharan Africa in particular.
- Devising a strategy of how to deliver global emissions reductions while minimizing economic and social cost during the transition.
- Developing a conceptual and quantitative framework for carbon pricing.
Collaboration, partnerships, and fora
- The IMF co-hosts the Secretariat of the Coalition of Finance Ministers for Climate Action.
- The IMF collaborates with international organizations and fora such as the United Nations (UN), the World Bank, Financial Stability Board (FSB), and the Network for Greening the Financial System (NGFS), where the IMF co-chairs the “Bridging the data gaps” workstream.
- The IMF works with standard setters like the International Financial Reporting Standards (IFRS) and the International Association of Insurance Supervisors (IAIS).
Key messages and events at COP27
- Remarks of the Managing Director at COP27 included:
- Finance Day Opening Remarks
- High-Level Ministerial Dialogue on the New Collective Quantified Goal on Climate Finance
- COP27 is the 2022 United Nations Climate Change Conference.
- COP27 is the 27th annual summit and will take place in Sharm El-Sheikh, Egypt, with world leaders, negotiators, government representatives, businesses, and citizens attending for twelve days of talks.
- The IMF emphasizes that COP27 carries unique urgency in the global effort to address climate change.
References