Top Posts
German court dismisses climate case against RWE
WHO Climate Change action plan approved
Report: World likely to breach 1.5°C limit in...
At Bonn climate talks, Brazil demands early deals...
Researchers warn Africa could face 113 million climate...
LAPO MfB launches tree-planting initiative to fight climate...
Stiell says new NDCs are about growth, antidote...
EU trains 5,000 Imo farmers to combat climate...
Jigawa holds first summit on agriculture, climate change
NEST, experts demand subnational action to address climate...
EcoNai Newsroom
  • Newsround
  • Nigeria
  • Africa
  • World
World

Economist asks IMF to give poor countries $300bn a year to fight climate crisis

by admineconai October 16, 2023
written by admineconai October 16, 2023
683

The Nobel prize-winning economist Joseph Stiglitz has said that Poor countries should be provided with $300bn (£246bn) a year from the International Monetary Fund to finance their fight against the climate crisis.

Stiglitz who spoke at the IMF’s annual meeting in Marrakech, said that developing nations needed their equivalent of the US Inflation Reduction Act – a package of grants and subsidies designed to promote green growth and jobs.

Stiglitz also said that the battle against global heating would only be won if poor countries were onboard but there was no hope of them coming up with their equivalent of the act, which he said was expensive and flawed but working.

He said that it had become necessary for richer countries should support the creation of $300bn of IMF special drawing rights (SDRs) each year to finance a global green transition while also admitting that it would be impossible to get his plan through the US Congress in its current deadlocked state but said he would continue to campaign for it.

“As the scale of climate change impresses itself more and more on us, we are going to need bolder things. When the time comes and we are frying and somebody says: ‘How do we get out of the frying pan?’, this [annual SDR allocations] is one way of doing so.”

Read also: AFDB grants over USD 13 million to tackle climate change impacts in Burundi

The need for extra money to help poorer countries cope with the effects of global heating and decarbonise their economies has been high on the agenda at the annual meeting of the IMF and its sister organisation, the World Bank, in Morocco this week, according to available reports.

Stiglitz, who is a former World Bank chief economist, said he welcomed plans to provide the bank with more capital to lend for green projects but said a far more ambitious approach was needed.

SDRs are an accepted international reserve asset that can be exchanged with hard currencies and can be used as a credit line. Seen as a form of money creation similar to quantitative easing, the IMF issued a $650bn tranche of SDRs in 2021 in response to the coronavirus pandemic. Rich countries did not need to use their allocations and agreed to recycle some of their SDRs into special IMF funds to support poor nations.

Stiglitz said of SDRs: “Basically, it is printing money. It wouldn’t be inflationary but it would be transformative.”

Story was adapted from the Guardian.

$300bnClimate crisisCountryEconomistIMFPoverty
0 comment 0 FacebookTwitterPinterestEmail
admineconai

previous post
AFDB grants over USD 13 million to tackle climate change impacts in Burundi
next post
Report shows water level at Amazon port in Brazil hit lowest point in 121 years

Related Posts

German court dismisses climate case against RWE

May 28, 2025

WHO Climate Change action plan approved

May 28, 2025

Report: World likely to breach 1.5°C limit in...

May 28, 2025

At Bonn climate talks, Brazil demands early deals...

May 23, 2025

Guterres raises alarm over rapid Himalayan glacier melt

May 17, 2025

Study shows two-thirds of global warming caused by...

May 8, 2025

Weather expert warns climate change to hit agriculture...

May 5, 2025

Trump dismisses authors of major climate report

April 30, 2025

New UN report shows Indigenous Peoples sidelined in...

April 25, 2025

UN Report shows Climate crisis driving surge in...

April 24, 2025

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

  • Facebook
  • Twitter
  • Instagram
  • Linkedin
  • Bloglovin
  • Vimeo

@2021 - All Right Reserved. Designed and Developed by Eco-Nai+

EcoNai Newsroom
  • Newsround
  • Nigeria
  • Africa
  • World