## Managing Director’s Opening Remarks at the Petersberg Climate Dialogue XI

_IMF News, April 29, 2020_

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## Bibliographic details
- Published: April 29, 2020

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### Context and framing
- Speech title: Opening Remarks by Kristalina Georgieva
- Date: April 29, 2020
- Occasion: Petersberg Climate Dialogue XI, delivered amid the COVID-19 pandemic and the “great lockdown.”
- Central assertion: The COVID-19 health crisis and economic response create an opportunity—and an obligation—to pursue a “green recovery” that addresses the climate crisis while supporting economic recovery.

### Three priority policy areas highlighted
- First — use public support wisely
  - When governments provide financial lifelines to carbon-intensive companies, they should mandate commitments to reduce carbon emissions (example cited: automakers during the global financial crisis committed to higher fuel efficiency standards).
  - With oil prices at record-low levels, phase out harmful subsidies.
  - Prioritize investment in green technologies, clean transport, sustainable agriculture, and climate resilience.
  - Energy-sector investment need cited: a low-carbon transition would require $2.3 trillion in investment every year for a decade. [The $2.3 trillion estimate includes the current investment of $1.8 trillion plus additional investment needs of $0.5 trillion.]
  - Rationale: These investments would boost growth and jobs during the recovery phase and help steer the world toward lower emissions.

- Second — promote green finance
  - Continue emphasis on green bonds and other forms of sustainable finance.
  - Use parts of extended government guarantees to mobilize private finance for green investment.
  - Mandate financial firms to better disclose climate risks in their lending and investment portfolios.
  - Need to find better ways of pricing in climate risk; recent IMF analysis shows that over the past 50 years climate-related disasters have had only a modest effect on equity markets, implying many investors have not fully priced climate risk.

- Third — put the right price on carbon
  - Carbon pricing is highlighted as a source of public revenue to help fund massive fiscal measures adopted during the pandemic and to reduce misallocation of investment that locks in high emissions.
  - Current global carbon price cited as $2 per ton.
  - Estimated carbon price needed to keep global warming under 2 degrees Celsius cited as $75 per ton.
  - A substantially higher carbon price is needed to encourage climate-smart investment and accelerate the shift to cleaner fuels and higher energy efficiency.
  - Equity and fairness measures: carbon tax revenues can be used to provide upfront assistance to poorer households, lower burdensome taxes, and support investments in health, education, and infrastructure.

### International cooperation and support for developing countries
- Individual country measures require collective action to succeed.
- Vulnerable and developing countries need support both to reduce carbon emissions and to adapt to the consequences of climate change.
- IMF role emphasized: supporting member countries with policy advice, financial resources, capacity development support, and providing a global platform for joint action.

### Key statistics, publications, and references cited
- Date of speech: April 29, 2020.
- Investment need for low-carbon transition: $2.3 trillion per year for a decade.
- Breakdown: current investment $1.8 trillion plus additional investment needs $0.5 trillion.
- Current global carbon price: $2 per ton.
- Carbon price estimated to keep warming under 2 degrees Celsius: $75 per ton.
- IMF Special Series Note referenced: “Fiscal Policies to Respond to COVID-19: ‘Greening the Recovery,’” April 20, 2020.
- IMF publication referenced: October 2019 Fiscal Monitor.
- Forthcoming IMF publication cited: April 2020 Global Financial Stability Report, Chapter 5: “Physical Risk and Equity Prices.”

### Closing message
- The choices made during the COVID-19 recovery will reshape economies, societies, and humanity’s future on the planet.
- A “green recovery” is presented as a necessary bridge to a more resilient future: coming out of one crisis need not be a prelude to getting into another.

*Source: Managing Director’s Opening Remarks at the Petersberg Climate Dialogue XI, April 29, 2020.*

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## References

- [https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva](https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva)
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_Source: https://www.imf.org/en/news/articles/2020/04/29/sp042920-md-opening-remarks-at-petersberg-event_