Written on 14 Apr 2023.
Since releasing its Climate Change Strategy in August 2021, what steps has the IMF taken to align its efforts with a development-centered approach in addressing climate change? Moreover, is the IMF making progress in helping vulnerable nations achieve their shared climate and development objectives?
As member of the Task Force on Climate, Development and the International Monetary Fund, Irene Monaterolo, Research Programme Director at EDHEC-Risk Climate Impact Institute, contributed to the new report entitled The International Monetary Fund, Climate Change and Development: A Preliminary Assessment which provides an independent and preliminary assessment of the IMF’s efforts to mainstream climate change. The assessment is evaluated through the development-centered lens articulated in the Task Force’s initial strategy report and advances actionable policy recommendations for the IMF and its stakeholders.
The report finds that, while modest progress has been made, the IMF must show greater leadership on climate change and development in three key areas:
IMF surveillance and lending must help member states make the proper investments toward low-carbon, carbon resilience and socially inclusive growth paths. To that end, the members of The Task Force advances a series of concrete policy improvements across the IMF toolkit:
In conclusion, it is recommended that the IMF should persist in utilizing its influence by working together to enhance its institutional capacity and encouraging the development of its capacity-building programs to improve climate expertise among authorities at the national level.
About the Task Force on Climate, Development and the International Monetary Fund
It is a consortium of experts from around the world utilizing rigorous, empirical research to advance a development-centered approach to climate change at the IMF. The global community must support climate resilience and transitions to a low-carbon economy in a just manner, and the role of the IMF in supporting a globally coordinated response is vital. In its inaugural report, the Task Force proposes three essential elements and five guiding principles to inform such a strategy.