On October 16, Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), emphasized the urgent need for more ambitious greenhouse gas emission reduction targets for 2030. Speaking at the “2024 ESG Global Leaders Summit” in Shanghai via video link, she stated that the world must establish the necessary mechanisms to achieve substantial and sustained reductions in emissions, aiming for a yearly decrease of more than 7% over the next decade.
Georgieva highlighted that a global goal has been set: to limit the rise in average global temperatures to within 2 degrees Celsius above pre-industrial levels, with an ideal target of 1.5 degrees Celsius. To meet this objective, global greenhouse gas emissions need to be cut by 50% by 2030. Unfortunately, she noted that the current commitments made by various parties only project a reduction of 12%.
According to Georgieva, emerging markets and developing economies require between $2 trillion and $3 trillion annually to undertake climate action, with up to 90% of these necessary funds needing to come from the private sector. To mobilize private sector investments on a large scale, she stressed the importance of accelerating essential macroeconomic reforms, which include simplifying regulations, deepening domestic capital markets, and implementing predictable climate policies to guide investors.
She acknowledged China’s steadfast commitment to achieving its climate goals, citing the rapid progress the country has made. Georgieva pointed out that initiatives like the carbon emissions trading system (ETS) and emissions quota auctions can ease the pathway to meeting these climate objectives while also generating revenue to support them.
“I want to recognize China’s role in international collaboration,” Georgieva said. “The IMF is keen to work with all our member countries to establish a global carbon price floor, which would encourage countries to come together to promote decarbonization. We welcome the opportunity to collaborate with our Chinese colleagues on this initiative.”
