Leaders from the World Bank Group, International Monetary Fund, and the United Nations met with minsters from 42 countries to discuss how to financially address climate change in the near and distant future. The meeting brought together people from all parts of the economy including government officials, civilians, investment firms, and private businesses.
Climate change is now affecting every country on every continent. It is disrupting national economies and affecting lives, costing people, communities and countries dearly today and even more tomorrow. Without action, the world’s average surface temperature is projected to rise over the 21st century. The poorest and most vulnerable people are being affected the most.
Affordable solutions are now available to enable countries to leapfrog to cleaner, more resilient economies. The pace of change is quickening as more people are turning to renewable energy and a range of other measures that will reduce emissions and increase adaptation efforts. But climate change is a global challenge that does not respect national borders. It is an issue that requires solutions that need to be coordinated at the international level and it requires international cooperation to help developing countries move toward a low-carbon economy.
Over the next 15 years, the global economy will require an estimated $89 trillion in infrastructure investments across cities, energy, and land-use systems. Putting a price on carbon and phasing out fossil fuel subsidies are two ways governments can free up and increase public funds. In addition, the group looked at the roles development banks and central banks can play in encouraging greater investment in low-carbon growth.
The meetings also reflected a growing understanding in the private and public sectors of the risks that climate change poses to supply chains, business assets, and society at large. Increasing pressure should be applied on companies to shift toward cleaner investments and moving away from fossil-fuels.
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