The IMF calls for sustained economic recovery “green”

Le FMI exhorte à une reprise économique «verte»

Photo: Samuel Corum Getty Images Agence France-Presse
The director-general of the international monetary Fund, Kristalina Georgieva, advocates for an economic recovery that is respectful of the environment.

The country must “do everything” to promote an economic recovery that is respectful of the environment after the pandemic of sars coronavirus, called for the director-general of the international monetary Fund in a speech delivered on the occasion of a virtual conference on the climate. “If this recovery should be sustainable — if our world must become more resilient — we need to do everything in our power to promote a “green recovery”, ” said Kristalina Georgieva at the Petersberg climate dialogue.

This forum, which is chaired this year by the United Kingdom, is also being held at a time when pressure is mounting on governments, faced with the recession, for which they are creating a recovery-friendly environment. Ms Georgieva stressed that taking action ” now “to combat the climate crisis is inevitable” if we want to leave a better world to our children. “It calls for three priorities : the use “judicious” of public support, the promotion of the finance green and the imposition of a carbon tax to a ” fair price “, that is to say, high.

“When governments provide buoys to rescue financial companies in carbon-intensive, they should require commitments to the reduction of carbon emissions,” she insisted. She recalled that this is possible and that it happened in the past during the global financial crisis, ” when some car manufacturers are committed to energy efficiency standards higher.” In France, the government has already conditioned the aid of 7 billion euros given to the airline Air France in environmentally-friendly commitments.

3 %

It is the recession which table the international monetary Fund this year.

“With oil prices at record levels, now is the time to gradually phasing out subsidies harmful “, she advises. It further calls on governments to give priority to investment in green technologies, clean transport, sustainable agriculture. The IMF has estimated that only in the energy sector, a transition to a low intensity of carbon emissions would require 2300 billions of dollars of annual investment within a decade.

The case of the carbon tax, the leader recalls the position of the IMF : “a significantly higher price” to accelerate the transition to cleaner fuels and improved energy efficiency.

The world price of the carbon tax is only US $2 per tonne, ” well below levels needed to keep global warming under 2 degrees Celsius, which we estimate to be US $75 per tonne “, she recalled. It emphasizes the rationale for the Fund : the revenue from the carbon tax can be used to provide assistance to the poorest households, reduce taxes and heavy support investments in health, education and infrastructure.

The IMF expects a global recession of 3% this year.

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