Jakarta – A new report from the Task Force on Climate, Development, and the International Monetary Fund (IMF) calls for urgent reforms in the IMF’s approach to climate change. The report warns that climate change and its global response pose significant risks to financial stability, poverty reduction, and long-term economic growth. As the leading multilateral institution responsible for the stability of the international financial system, the IMF has a critical role in the global transition to a low-carbon economy.
While the IMF has made some progress in addressing climate issues, the report highlights the need for greater leadership in three key areas: multilateral surveillance, bilateral surveillance, and its lending toolkit. The Task Force outlines 22 reforms in its IMF 2030 Action Agenda, urging the IMF to increase climate financing, shift from fiscal consolidation to resource mobilisation, and expand access to the Resilience and Sustainability Facility.
Experts emphasize the urgency of these changes. Iyabo Masha, Director of the Intergovernmental Group of 24, said, “The IMF must rise to the task of providing developing countries the support, resources, and guidance necessary for resilient development in a climate-constrained world.”
The report calls on IMF Managing Director Kristalina Georgieva to lead these reforms, with a progress update expected at the 2025 IMF/World Bank Annual Meetings. With the global window to limit warming to 1.5°C narrowing, the report stresses that the IMF must act quickly to support a just and sustainable global economic transformation. (nsh)
