Climate finance and debt relief loom large at World Bank, IMF meetings

The urgent issues of climate financing and global inequality will underpin this week’s spring meetings of the World Bank and the International Monetary Fund – coming amid growing calls for a shake-up of those institutions to avoid a climate-driven “economic catastrophe”.

The debt burden on developing countries, most of which are suffering disproportionate climate shocks, is an issue that’s gained traction at successive climate talks – with a Loss and Damages Fund hailed as a major success at last year’s Cop28 conference in Dubai.

Finding the trillions of dollars needed for broader climate finance is a challenging question that will be addressed at the Washington meetings, which come as the World Bank and IMF – the Bretton Woods institutions – mark 80 years of promoting international monetary cooperation.

Created by 44 Allied nations in the aftermath of World War II to prevent the sort of economic instability that contributed to the Great Depression as well as the war, the institutions are now tasked with modernising themselves as fresh challenges threaten the global economy.

'Quantum leap'

The head of the UNFCCC climate body, Simon Stiell, last week warned that a “quantum leap” in climate finance was needed to avoid a scenario in which the world’s economy is brought to a devastating halt.

Without this revolutionary progress, he said, many countries will be unable to implement strong new climate plans in early 2025, when the next round of NDCs (Nationally Determined Contributions) is due.

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