The IMF Managing Director, Kristalina Georgieva has said that developing economies must concentrate on climate action measures to bridge the gaps created by the risk of policy-driven geo-economic fragmentation.
Georgieva stated this in a blog post where she emphasized that emerging and developing economies are suffering from decreased capital flows and a dramatic reduction in global collaboration.
According to her, technology spillovers that have increased productivity growth and living standards would no longer help developing nations. She noted that the developing world would continue to lag behind industrialized nations in terms of income levels.
Read also: African environmentalists question credibility of climate negotiations
Georgieva advised the nations to concentrate on areas where cooperation is crucial and postponement is not an option. She specifically suggested that poorer economies take strong measures to combat climate change.
She stated that this entails developing fresh strategies for achieving shared goals through funding and political will while also emphasizing the necessity of increasing climate finance to support vulnerable nations in their efforts to adapt.
She further advocated the creative application of public balance sheets, including the use of equity, first-loss investments, and credit guarantees, which can assist in mobilizing billions of dollars in private finance.
Story was adapted from Nairametrics.
