When the environment emerges from COVID-19, there is a new sense of urgency to address climate change. As part of the IMF and World Bank Group's Spring Meetings, Kristalina Georgieva, IMF Managing Director, met with US Special Presidential Envoy for Climate Change, John Kerry, to discuss how to convert climate goals into action while creating dynamic and equitable prospects as part of the transition to the new climate economy.

“Climate change poses an increasing threat to macroeconomic and financial stability. Climate action, generates green economy and green employment through investments in renewable technology and climate adaptation. This is exactly what the IMF is about. Stability, jobs, and development are all important factors. As we participate in policy debates with our stakeholders, environment is now part of our institution's DNA, at the core of our work.

“We investigate how they can improve their mitigation and adaptation methods. We calculate climate-related financial stability threats when we look at financial stability, and we act on data because good data leads to good policy,” Georgieva said.

Secretary Kerry discussed the new job and development prospects that a changing climate economy would bring. “It's pretty simple economics,” says the author. The truth is that there is a tremendous potential for new job growth in the investments that must be made to address the climate crisis.

Three employments, according to the US Bureau of Labor Statistics, will rise by more than 50% in the coming year. Wind turbine technician is ranked first. Nurse practitioner is number two, and we know why.

“The third person is a solar panel installer. Right now, it's taking place. The market has already begun to move in a positive direction. Coal is being phased out of the equation. Kerry said, "It's shifting to renewables and alternative sustainable energy."

Georgieva emphasized the IMF's ability to guide member countries toward a greener future through special programmes designed for vulnerable countries to help them improve their policies and create budgetary space to make wise investments.

It is critical that we understand that coping with the climate crisis entails not only mitigating, but also adjusting.  Unfortunately, several countries that did little to trigger this crisis are now paying the price. This is why it is important for the developed world to keep its pledge of a hundred billion dollars per year between now and 2030 to help the developing world not only accelerate but also adjust to a low-carbon future.

“And what it means for us at the IMF is that we search for avenues to assist these countries. In reality, adaptation measures are our primary concern. What could be done to help companies develop financial reserves so that when they are hit by a blow, they can react quickly and invest in perseverance?” Georgieva asked.

She also said that the COVID-19 crisis demonstrates how fragile the world is to disturbances, and that working together is the only way to make the world more durable.

“This pandemic has shown that we are susceptible to external shocks, and what lies forth is a future that is more shock resistant. To make people more resistant to shocks, we can invest in them so that they are safe, trained, well-protected in difficult times, and resilient. We need to put money into nature. As a result, nature is resilient.

“Of course, we must keep investing in our economy's strength.” I believe that the pandemic has put an earring on our ear, and it’s that nature is not a joke to disregard. It also reminded us that we are all in this together. To achieve a more sustainable environment we must collaborate,” Georgieva said.