Statement delivered by Ms. Marilou Uy, Task Force on Climate, Development and the IMF
V20 MINISTERIAL DIALOGUE X
16 April 2023
Ms. Marilou Uy, Task Force on Climate, Development and the IMF
Thank you very much, Chair, for the opportunity today to brief you on the Task Force Preliminary Assessment for the Development Orientation of IMF Climate Strategy. Hard copies are available in this room and in the link in the communiqué. So, the Task Force welcomes the important actions by the IMF to mainstream climate change in its work and has suggestions in three areas, but very briefly.
First is to recognize that one policy, carbon pricing does not fit all. Diverse countries use mostly non-pricing policies nationally for climate mitigation and so mobilizing new sources for climate financing is critical.
Second is to better capture the full implications of compounding climate related risks and cross border policy spillovers so as not to underestimate the macro fiscal implications of the climate transition. Debt Sustainability Analysis, for example, and it’s been mentioned, should explicitly account for climate risks and their macro fiscal implications.
Third and lastly, is to scale up the IMF’s lending capacity in ways that align short term and long-term financing horizons without jeopardizing that sustainability and growth prospects. With these, the Task Force looks forward to new directions in the IMF’s climate change approach and to continue engagement with the V20.