The International Monetary Fund (IMF) has stated that the majority of the $2 trillion in annual climate investments needed by developing countries by 2030 will have to come from the private sector. Governments risk accumulating high debts if they attempt to reach net-zero goals using public funds. The IMF recommends that countries develop carbon pricing schemes to raise revenue and encourage private investments.
The World Bank has proposed measures to increase lending to developing countries by an additional $100 billion over the next ten years. This move is part of the bank’s ongoing reform process and aims to incorporate climate change into its mission. The bank’s management plans to seek shareholder approval for a hybrid capital measure and a new portfolio guarantee platform that could result in lending growth beyond the proposed amount. These efforts complement existing measures to enhance lending by up to $50 billion.
