Home / News / India /  ‘Restructure World Bank, IMF for climate financing’

Global institutions such as the World Bank and the International Monetary Fund (IMF) need to be reformed and restructured to enable climate financing as they were designed for the post world war 2 world order but not for the post-climate change era of today, said Amitabh Kant, G20 India Sherpa.

Speaking at the B20 Indonesia Global Dialogue in India, organized by CII, Kant reiterated that the developed world needs to fulfill the commitments made to the developing nations on climate financing at the United Nations Climate Change Conference in Copenhagen. Many developing countries including India and Indonesia were not responsible for all the carbon emissions of the world, he added.

“When the western world was industrializing, it was carbonizing the world. When China was expanding, it was carbonizing the world. Now when developing countries have to grow and expand, without carbonizing the world. This necessitates that resources that the developed world, in the name of climate justice, agreed to, both in Copenhagen, COP21, and COP26, should be lived up to," Kant said. 

Global institutions of the world such as the IMF and World Bank need to be restructured to enable climate financing, he said, adding that if education, health, and nutrition have to be impacted, there is a greater need for resources. 

“All these institutions do direct lending to countries rather than credit enhancement. They don’t provide blended finance. That is a basic inherent flaw in these institutions. So these need to be restructured to enable climate financing for the sake of the citizens of the world and to make far more accelerated finance," Kant said. 

Speaking about the impact of the war and the ensuing food and energy crises, the G20 India Sherpa stated that for the first time in 12 of the 11 meetings of G20, countries have not been able to get a communique out, largely due to differences within the G20.

“These are very challenging times because we are in the midst of a fractured world, not merely because of the Russia-Ukraine war. We have seen food and energy crises, climate change, biodiversity loss and the global supply chain remains disrupted," he added.

Business 20 (B20), formed in 2010, is the official G20 dialogue forum with the global business community which aims to deliver concrete actionable policy recommendations on the priorities of each rotating presidency to spur economic growth and development.

India is focusing on open source, intertemporal efficiency, transparency, trustworthiness, and time-bound solutions, said Anurag Jain, Secretary, Department for Promotion of Industry & Internal Trade, Ministry of Commerce & Industry.

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