A debt crisis is looming in the Global South. High levels of public debt service and insufficient fiscal and monetary space are threatening recoveries and impeding much-needed investments in climate resilience and the 2030 UN Sustainable Development Goals. A new policy brief from the Think7 (T7) Task Force on Sustainable Economic Recovery makes seven recommendations […]
While the International Monetary Fund (IMF) has long signaled an interest in contributing to combat climate change, 2021 marked a critical juncture in the IMF’s commitment to the cause. Under the leadership of Managing Director Kristalina Georgieva, the IMF accelerated the mainstreaming of climate change in its operations. Most notably, Georgieva made a concerted effort […]
Rising emissions must end before 2025 if the world is to stay below the 1.5°C threshold of global warming. Rapid, transformative green transitions will require an unprecedented mobilization of resources and investment, particularly for countries that rely on fossil fuels as a major source of revenue. Net-zero transitions, without global support and coordination, could threaten […]
The fiscal implications of managing climate transitions are significant, especially considering fossil fuels are a major source of revenue for many countries. Furthermore, the revenue raised from carbon pricing, which has proven to be politically difficult to enact, may be insufficient to finance or incentivize the low-carbon transition. This means the International Monetary Fund (IMF), […]
On Monday, March 28, 2022, China’s National Development and Reform Commission issued new guidelines on greening the Belt and Road Initiative (BRI), the ambitious multi-billion-dollar international push to better connect China to the rest of the world through trade and infrastructure. Through this venture, China is providing over 100 countries with funding they have long […]
Staring down the most crucial decade for climate action, world leaders are putting ambitious climate pledges on the table, and next week’s UN Intergovernmental Panel on Climate Change (IPCC) report promises to serve as an updated blueprint for reducing emissions. Swift, bold climate action is necessary, but climate policies that aren’t designed properly could have […]
Climate change policies that occur in one nation can have significant macro-critical implications in other countries, but to date, there has been limited attention to transition spillover risks in the world economy. A new policy brief from the Task Force on Climate, Development and the International Monetary Fund seeks to address this knowledge gap. It […]
In Southeast Asia, several countries are already exposed to socio-economic and financial losses induced by physical climate risk. Some Southeast Asian countries exposed to physical risk, such as Indonesia, are also leading producers and exporters of fossil fuels. This compounds the country’s climate impacts by exposing them transition risk, or a situation in which climate […]
As the world comes to grips with the devastating economic and public health consequences of COVID-19, Southern-led alternative institutions for finance and development have taken on more importance than ever. The new book, “South-South Regional Financial Arrangements: Collaboration Towards Resilience,” from William N. Kring and Kevin P. Gallagher, in partnership with Diana Barrowclough and Richard […]
The onset of the COVID-19 pandemic triggered a sudden reversal in global capital flows, compounding the fallout from the pandemic for emerging market and developing economies. Between mid-January and mid-March 2020 alone, the Organization for Economic Co-operation and Development (OECD) estimated outflows from these countries at $103 billion. The consequences of such sudden stops or […]