IMF: To encourage consumers and investors to move towards a low-carbon future, panellists at the World Economic Forum's annual meeting said the cost of carbon needs to be set at a level that is more accurately set at a higher level. Reflects the environmental damage caused by emitting industries.

International Monetary Fund Managing Director Kristalina Georgieva claims that insufficient data, arguments that market forces would do better than subsidies, and a lack of fair pricing for carbon are some of the reasons why the money is not going to the right places. To deal with the climate crisis.

According to him, the price of carbon is around $5 per tonne, whereas it should be $75 per tonne. “We are in an abyss and we have to get out of it,” Georgieva said during a panel discussion about climate finance, at the WEF meeting in Davos, Switzerland.

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"By 2030, we need to reduce emissions by between 25% and 50% of where they were in 2019." If we meet all our commitments we will reduce them by 11%. The distance is huge.

Bill Winters, CEO of Standard Chartered, said that while private capital wants to invest in projects to tackle climate change, it is being constrained by a lack of international standards and fair carbon pricing.

If we are punished for the harm we do to the environment, the decision-making process of every company, including mine and other banks, will fundamentally change. It won't be enough. According to Winters, there must also be a catalyst in the public sector.

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Oliver Batte, CEO of German insurer Allianz, said more needed to be done by multilateral development banks and others to collaborate to reduce the high cost of capital, especially targeting climate solutions in developing countries. Is. Baete declared, "We don't want subsidies. We need a deeper understanding of the risks,"

To attract more private capital to climate projects in developing markets, multilateral development banks will need to take on "much more risk" according to Patrick Khulekani Dlamini, CEO and Managing Director of the Development Bank of Southern Africa.

Winters claimed that despite serving as the main channel for financing from developed countries to developing countries, multilateral development banks only receive about 1/15th of the funds they need.

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According to Winters, these organizations also need incentives to boost their leverage factor. According to him, at present, every dollar of World Bank funding generates about 95 cents of funding for the private sector. We are talking of billions, but we need trillions of dollars, he said.