IMF says private sector needs to shoulder most of climate investment burden

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The International Monetary Fund (IMF) has stated that the majority of the $2 trillion in annual climate investments needed by developing countries by 2030 will have to come from the private sector..

Most of the $2 trillion in annual climate investments in developing countries needed by 2030 will have to come from the private sector, the IMF said, warning that governments risk high debts if they try to reach net-zero goals with public funds...

Climate finance will be one of the dominant topics at the International Monetary Fund and World Bank annual meetings next week in Marrakech, Morocco, and two chapters of the IMF's forthcoming Fiscal Monitor and Global Financial Stability Report (GFSR) both point up the need to pave the way for private investors to shoulder the burden..

The Fund's Fiscal Monitor estimates that relying on public spending to fund de-carbonization investments on this scale would cause a massive, unsustainable run-up in debts, possibly to 45% to 50% of gross domestic product for a large, high-emitting emerging market...

The IMF recommends that to mitigate the debt run-up caused by public climate investments, countries develop carbon pricing schemes to raise revenue and encourage more private investments..

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