IMF at COP29
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Pavilion purpose and policy focus
- The IMF is sharing a pavilion at COP29 in Baku, Azerbaijan, with the World Bank Group and the Financial Times to create opportunities for dialogue and knowledge sharing.
- The IMF will promote economic and financial sector policies to help members and the wider international community reach shared climate goals such as:
- reducing emissions,
- increasing climate finance,
- boosting resilience,
- easing the transition to low-carbon economies.
Pavilion program — overview of events and themes (dates and times preserved)
- November 12, 2024 — 10:00 AM - 10:45 AM (GMT+4)
- Session: "This Critical Decade: A Wake-up Call for Global Climate Action"
- Focus: urgent action to cut greenhouse gas (GHG) emissions; countries will set new emissions targets for 2035 while revising their 2030 targets; current Nationally Determined Contributions only reducing global emissions by one quarter of what’s needed; risk of an “emissions cliff edge” that could put the target of 1.5°C beyond reach.
- Panelists: Ruud de Mooij; Ana Toni; Tinne Van der Straeten. Moderator: Will Kennedy.
- Essential reading highlighted: "Sleepwalking to the Cliff Edge?: A Wake-up Call for Global Climate Action".
- November 12, 2024 — 5:00 PM - 5:45 PM (GMT+4)
- Session: "The Role for the Bretton Woods Institutions in Climate Action"
- Focus: reflections on the Bretton Woods institutions at their 80th anniversary and scaling up climate-related actions and financing.
- Panelists: Mark Malloch Brown; Andrew Steer; Helen Mountford; Amal-Lee Amin. Moderator: James Astill.
- November 12, 2024 — 6:15 PM - 7:00 PM (GMT+4)
- Session: "Unlocking Financing for the Green Transition in Emerging and Developing Economies"
- Focus: market reforms and financial sector policies to attract official financing and FDI for low-carbon technologies; domestic policies to enhance government revenue for renewable energy; role of Just Energy Transition Partnerships, public-private partnerships, blended finance, and international cooperation.
- Panelists: Kristalina Georgieva; Ajay Banga; Mohamed Jameel Al Ramahi; Nadia Calviño. Moderator: Pilita Clark.
- Related IMF publications referenced: "Policies to Foster Green FDI: Best Practices for Emerging Market and Developing Economies"; "Harnessing Renewables in Sub-Saharan Africa: Barriers, Reforms, and Economic Prospects"; "Financial Sector Policies to Unlock Private Climate Finance in Emerging Market and Developing Economies, Chapter 3, October 2023 Global Financial Stability Report (GFSR)".
- November 14, 2024 — 4:00 PM - 4:45 PM (GMT+4)
- Session: "Destination Net Zero: The Urgent Need for a Global Carbon Tax on Aviation and Shipping"
- Focus: decarbonizing international transportation via a carbon tax and pricing instruments like feebates; policy options, implementation, and allocation of revenues for climate finance.
- Panelists: Morten Bo Christiansen; Marie Owens Thomsen; Tom Evans. (One panelist listed as Deputy Director, Fiscal Affairs Department, IMF.)
- November 15, 2024 — 9:00 AM - 9:45 AM (GMT+4)
- Session: "The Pioneering Role of IMF’s Resilience and Sustainability Trust (RST) in Climate Action"
- Focus: RST’s Resilience and Sustainability Facility (RSF) provides affordable longer-term financing for structural challenges including climate change and pandemics; early assessment indicates a positive impact on progression of reforms.
- Key statistics: the Fund has approved 20 arrangements with total commitments of more than $9.5 billion.
- Panelists: Bo Li; Franz Tattenbach; Samba Thiam. Moderator: Simon Jessop.
- November 15, 2024 — (time unspecified in schedule block)
- Session: "Bridging the Adaptation Financing Gap: Challenges and Potential Solutions"
- Focus: scaling up adaptation financing for EMDEs, enhancing partnerships to attract private capital for adaptation investments; EMDEs disproportionately affected and need significant investment in climate resilience.
- Panelists: Rania Al Mashat; Tracy Kajumba. Moderator: Anca Gurzu.
- November 16, 2024 — (time unspecified in schedule block)
- Session: "Measuring Climate Risks for Smarter Adaptation and Mitigation Solutions"
- Focus: building an internationally accepted framework for measuring physical and transition risks; using risk indicators to assess vulnerabilities and guide policy and adaptation strategies.
- Panelists: Shahin Mahmuzade; Jadwiga Massinga; Stephane Hallegatte; Alessandra Alfieri. Moderator: Professor Matthew Agarwala.
Key findings and analytical emphasis
- Urgency and target-setting
- Early next year, all countries will set new emissions targets for 2035 while revising their 2030 targets.
- Current Nationally Determined Contributions only reduce global emissions by one quarter of what’s needed.
- Further delay risks an “emissions cliff edge,” implying implausible cuts after 2030 and jeopardizing the 1.5°C target.
- Financing and reform priorities for EMDEs
- Delivering on global climate goals requires shifting to renewable energy and green technologies, with FDI and official lending crucial where fiscal space and financial development are limited.
- Market reforms and financial sector policies can attract official financing and FDI for low-carbon technologies.
- Domestic policies that enhance government revenue are part of financing strategies for renewable energy investments.
- Instruments and structures highlighted as catalytic: Just Energy Transition Partnerships, public-private partnerships, blended finance, and international cooperation.
- Adaptation finance and resilience
- EMDEs face disproportionate impacts and need significant increases in adaptation finance at a time of constrained development financing.
- The IMF’s RSF provides affordable longer-term financing aimed at structural reforms; initial evidence suggests positive reform progression.
- Scaling partnerships among public institutions, private sector, and civil society is central to mobilizing private capital for adaptation.
- Measurement and risk assessment
- Increasing frequency and severity of extreme events and rising transition risks necessitate timely risk assessments that look ahead.
- A global framework for measuring both physical and transition risks can help assess country vulnerabilities and guide resilient policy design.
Policy implications and recommendations (as emphasized in sessions)
- Raise global ambition now to avoid an “emissions cliff edge” and to keep the 1.5°C target within reach.
- Implement market and financial sector reforms to attract official financing and private FDI for low-carbon technologies in EMDEs.
- Use revenue from carbon pricing (including a global carbon tax on aviation and shipping or feebates) to finance climate action.
- Scale up the Resilience and Sustainability Facility to provide affordable longer-term financing that supports climate adaptation and mitigation reforms.
- Develop and adopt internationally accepted frameworks and indicators for measuring physical and transition climate risks to inform policy and investment decisions.
- Strengthen cross-sector partnerships—including Just Energy Transition Partnerships, blended finance, and public-private collaboration—to catalyze renewable energy and adaptation investments.
IMF climate data and publications tools
- The IMF's Climate Change Indicators Dashboard provides standardized, comparable data for macroeconomic and financial stability analysis to assess linkages between economic/financial activities, government policies, and climate/environmental variables on a country-level or cross-country basis.
References