Most of the $2-trillion in annual climate investments in developing countries needed by 2030 will have to come from the private sector, the IMF said, warning that governments risk high debts if they try to reach net-zero goals with public funds.
The Fund’s Fiscal Monitor estimates that relying on public spending to fund de-carbonization investments on this scale would cause a massive, unsustainable run-up in debts, possibly to 45 per cent to 50 per cent of gross domestic product for a large, high-emitting emerging market.
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