Today is Tuesday, April 23, 2024.
(spoiler: tomorrow, important post on the legal nature of voluntary carbon credits).
What does International Monetary Fund (IMF) has to do with today’s Carbon Credit Markets post? Well, today it will not be about any update on IMF’s view on carbon pricing:
But instead, about key senior financial meetings last week: the 49th. Meeting of the International Monetary and Financial Committee (IMFC), also known as Spring Meetings. Organised together with the World Bank, there are held in Washington, United States.
note: Funny - and confusing at the same time - this reference to one of the 4 seasons, “spring” in this case. It does not mean much for the Global South. Putting it directly, Spring in the Northern hemisphere is Autumn in the South. Even if 90% of the World population lives in the Northern hemisphere, wouldn’t this be a matter of inclusion?
Back to the IMFC meetings.
As we noted discussions about the post-COP28 Loss & Damage Fund and climate oddities, here are some highlights for you.
The global economy is “facing pressing structural challenges, including from climate change, elevated debt vulnerabilities, rising inequality, as well as the risk of geoeconomic fragmentation” according to the Chair’s Statement.
One of the panels was titled “Making the New Loss and Damage Fund a Success — Recommendations by Climate Vulnerable Civil Society”. Unfortunately we just had access to the agenda itself: “explore paths to success for the new Loss and Damage Fund. Speakers will reflect on strategies for mobilizing new and additional finance, including taxation, Special Drawing Rights, and complementary risk transfer. Operational and access modalities that serve climate-vulnerable communities, and the role of civil society will be highlighted”. With announced panelists from Munich Climate Insurance Initiative, Institute for Climate and Sustainable Cities, Financial Futures Center, SLYCAN Trust and Caribbean Policy Development Center.
There was a communiqué, though, dated April 16, 2024 by the Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development with some other interesting references, from where we quote:
“While noting the renewed commitment to both adaptation and mitigation, we welcome the progress on the operationalization of the Loss and Damage Fund championed by developing countries. We call on donors to fulfill their commitments, currently estimated at US$660 million, in a timely manner; and on the World Bank to expedite the establishment of the fiduciary structure of the fund.”
“We hope that investment incentives do not turn nature and biodiversity into collateral for debt, but rather into generators of new long‑term income”.
Interesting.
Click at the image below for the full communiqué, with emphasis to paragraph 12.
Last but not least - and maybe no much news here - at the end of the meetings there was a general perception that all multilateral development agencies involved should coordinate their efforts better, working as a system, maximising resources to the benefits of the countries.
Still about the loss & damage fund, you might be interested in revisiting this post:
