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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As falling renewable energy costs and a shadow carbon price are making coal power investments unviable the Asian Development Bank (ADB) is making a decisive shift to clean energy, according to bank energy chief Yongping Zhai.
The Global Climate Action Summit has created a subtle, yet resonating effect on international climate diplomacy. Arguably, its biggest contribution lies in reaffirming the active role of the US in climate action – a refreshing sign of political maturity and environmental responsibility in Trumpian times.
Brazil’s president-elect Jair Bolsonaro has named an anti-globalist diplomat to lead foreign affairs and his country’s relationship with the Paris Agreement. Ernesto Araújo, a relatively junior diplomat, accuses the left of using the environmental cause ‘to serve their political project of total domination’
As opposed to China’s Belt and Road Initiative, India could lead a campaign for climate-responsible international development cooperation, shifting from coal to renewables domestically and promoting the values of the International Solar Alliance globally.