BAKU, Azerbaijan, November 14. The International Monetary Fund (IMF) mainly supports reforms in macroeconomic and macrofinancial areas, such as 'green' public financial management and 'green' public investment management, Deputy Managing Director at the IMF Bo Li said during a panel discussion on "Global Financial System: Scaling Up Financing for Climate Action" in Baku today, Trend reports.
"Unlike our colleagues from the World Bank, we don't provide loans for specific projects. We finance the budget by providing loans directly to the state budget to support reforms. In terms of reforms, we primarily support reforms in macroeconomic and macrofinancial areas, such as 'green' public financial management and 'green' public investment management.
This also includes 'green' budgeting. Additionally, in the financial sector, we support the development of a 'green' taxonomy, as well as promote the development of climate data and climate reporting in the financial sector. Moreover, we support institutional reforms to foster climate action," he explained.
According to him, the IMF also supports the development of climate data and climate statistics as infrastructure.
"All these reforms create favorable conditions for the private sector to invest in these countries," he emphasized.
To note, the 29th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29) started in Baku on November 11. The United Nations Framework Convention on Climate Change is an agreement signed at the Earth Summit in Rio de Janeiro in June 1992 to prevent dangerous human interference in the climate system.
A total of 198 countries are Parties to the Convention. Unless the parties decide otherwise, the COP is held annually. The first COP event took place in March 1995 in Berlin, and its secretariat is located in Bonn.
The main expectation from COP29 is to agree on a fair and ambitious New Collective Quantitative Goal (NCQG) on climate finance. The COP29 chairmanship has launched 14 initiatives that include linkages between climate action and the Sustainable Development Goals, including green energy corridors, green energy storage, harmony for climate resilience, clean hydrogen, methane reduction in organic waste, action on green digital technologies, and other topics.
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