The International Monetary Fund is to start factoring in climate change to its macroeconomic models from next year, Climate Home has learned. That means its much-cited World Economic Outlook could expose how moves to curb greenhouse gas emissions threaten growth in oil-exporting countries, for example. The Washington DC-based IMF is the world’s leading authority on financial stability, boasting significant influence in the 188 countries it counts as members.
In May, it released a controversial study suggesting fossil fuel subsidies were worth US$5.3 trillion a year. In August, it urged Saudi Arabia to diversify its economy away from oil. Christine Lagarde, head of the organisation, has repeatedly called for carbon pricing to encourage green investment.
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The Cerrado, a tropical savannah region located in Central Brazil, is nearly half as large as the Amazon and a deforestation hotspot. Yet little attention is paid to this important biome. That has to change.
China’s Belt and Road Initiative projects may exacerbate the risk of climate-related instability across the Middle East in the long term.
With the European Green Deal, the European Commission under President Ursula von der Leyen has committed to accelerating decarbonisation in Europe as a major priority. The report "The Geopolitics of Decarbonization: Reshaping European Foreign Relations" shows how the EU’s external relations need to evolve to adequately reflect the political, economic and social outcomes of this process.
Russia’s economic development minister warned last week that the EU’s plans to deploy a carbon tax at the bloc’s borders will not be in line with World Trade Organisation (WTO) rules, just as Brussels doubled down on the idea of green tariffs.