IMF says ignoring climate change will impact growth

Her message to the G20 was loud and clear; negative environmental impacts and health crises like Ebola are directly affecting the economy, whether anyone likes to admit it or not.

Christine Lagarde, Managing Director of the International Monetary Fund was addressing micro critical issues after G20 talks wrapped up recently.

“Look at climate change, look at Ebola, they all have economic impacts, negatively or positively, on growth,” Ms Lagarde said.

From the IMF’s point of view, resource and energy industries need to start addressing environmental degradation in terms of economic costs.

Lagarde cited this as being macro-critical; important in order to achieve goals set out in national terms, such as rate of growth.

“When we look at the right price of energy by including the external factors, such as those that cause damage to the environment, it is macro critical,” Ms Lagarde said.

G20 leaders who indirectly backed Ms Lagarde’s views included President Obama who pledged $3b; the UK PM who said on Sunday he had already put money aside to pledge to Green Climate Fund; and Ban Ki-Moon who called on G20 leaders to pledge to the Green Climate Fund.

 

 

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