To achieve a just transition to renewables, the international community must enable emerging and developing economies to make the necessary investments in green technologies without going deeper into debt or sacrificing income growth. While the challenges involved are enormous, there is cause for hope.
BEIJING – To limit global warming to 1.5° Celsius, it is crucial to decarbonize the entire world. But pressuring emerging economies to reach net-zero emissions too quickly could lead to an explosion of dollar-denominated debt and financial volatility across the developing world. Integrating these countries into the decarbonization effort requires a more nuanced strategy.
Over the past year, policymakers and scholars, some from developing countries, have proposed solutions to this conundrum. As global leaders gather for the annual meetings of the International Monetary Fund and the World Bank in Marrakesh on October 9-15, three proposals in particular merit serious debate.
While emerging and developing economies have contributed little to the climate crisis, their carbon dioxide emissions are increasing rapidly. To achieve the economic growth their citizens expect, stay within their carbon budgets, and shift away from fossil fuels, these countries must make significant investments in green technologies, primarily financed through international capital flows.
BEIJING – To limit global warming to 1.5° Celsius, it is crucial to decarbonize the entire world. But pressuring emerging economies to reach net-zero emissions too quickly could lead to an explosion of dollar-denominated debt and financial volatility across the developing world. Integrating these countries into the decarbonization effort requires a more nuanced strategy.
Over the past year, policymakers and scholars, some from developing countries, have proposed solutions to this conundrum. As global leaders gather for the annual meetings of the International Monetary Fund and the World Bank in Marrakesh on October 9-15, three proposals in particular merit serious debate.
While emerging and developing economies have contributed little to the climate crisis, their carbon dioxide emissions are increasing rapidly. To achieve the economic growth their citizens expect, stay within their carbon budgets, and shift away from fossil fuels, these countries must make significant investments in green technologies, primarily financed through international capital flows.