IMF flags rising public debt levels
The International Monetary Fund is concerned about the elevated public debt levels across most countries citing this is complicating climate goals and is calling for a mix of policies to tackle this dilemma. CNBC Africa is by Era Dabla Norris, Assistant Director, IMF Fiscal Affairs Department for more.
Mon, 02 Oct 2023 14:53:12 GMT
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AI Generated Summary
- The IMF is advocating for the implementation of carbon pricing as a key tool for emerging markets to transition to sustainable energy sources and reduce emissions.
- Emerging market economies, particularly in Africa, face challenges in managing public debt while pursuing climate mitigation measures, highlighting the need for a well-sequenced mix of policies.
- Delaying carbon pricing could lead to higher fiscal costs and hinder efforts to achieve climate targets, underscoring the importance of immediate action and global coordination.
The International Monetary Fund (IMF) has raised concerns about the escalating levels of public debt in various countries, warning that it is hindering progress towards climate goals. The IMF is advocating for a combination of policies to address this complex challenge. In a recent interview on CNBC Africa, Era Dabla Norris, Assistant Director at the IMF Fiscal Affairs Department, highlighted key points from the Fund's latest report. One of the central recommendations is the implementation of carbon pricing, such as a carbon tax or emissions trading scheme, as a crucial tool for emerging markets, including those in Africa. Carbon pricing aligns with the 'polluter pays' principle, incentivizing companies and households to reduce emissions and invest in sustainable energy sources. It also generates revenue that can be channeled into productive investments, education, and climate adaptation, benefiting both the economy and vulnerable populations. However, Norris emphasized that carbon pricing alone is insufficient and must be complemented by other policies to stimulate private investment in green technologies and address market failures.
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