The head of the IMF warned Friday that Western subsidies to combat climate change and encourage the transition to clean energy sources risked hitting the economies of the developing world.
"My biggest concern is that something that in principle is very good to accelerate the transition to the green economy by using public money to step up private investment... may not serve well the emerging markets and the developing world," Kristalina Georgieva said at the World Economic Forum in Davos.
The United States under President Joe Biden has passed the Inflation Reduction Act which contains sweeping subsidies and tax cuts worth around $370 billion for reducing greenhouse gas emissions, making it the largest-ever US programme to combat climate change.The European Union is considering responding in kind amid fears that the IRA will encourage businesses to move factories and production to the United States at a time when it is trying to strengthen its industrial base.
Georgieva warned that the subsidies could lead to technology and production transfers from poorer emerging countries to the rich world. "If we are to strive to get the industrialised world clean and we don't think about the emerging markets, we are all cooked," she said.In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month.
_Business What is real democracy. Is it one man one vote. Or is that mob rule. Should democracy not be on a percentage ratio.
_Business Mission impossible was promoting IMF🤔
_Business Hier kom nog baie geld vir die ANC diewe.
_Business The developing world is a mixed bag. You have places like Kenya powered on 80% renewables , and places like South Africa stuck in the grips of a stupid populace supporting a stupid failed liberation movement fixated on dirty power that doesn't even work most of the time
_Business And yet in your country your president allowed IPPs of non reliable renewables
_Business That is always what they aim to do. We know it. No news there.