$50tn investment funds industry must help to finance green transition, IMF says – The National

$50tn investment funds industry must help to finance green transition, IMF says – The National

The $50 trillion global investment funds industry needs to step up efforts to finance the transition to a greener economy and help mitigate the effects of climate change, the International Monetary Fund has said.

The transition to net-zero emissions requires an unprecedented change in strategy by companies and governments, as well as investment of as much as $20tn over the next two decades, the Washington-based fund said.

“These investments would need to be orientated away from the fossil fuel sector and towards renewables as well as towards low-emissions solutions within sectors,” the IMF said in the green economy transition chapter of its World Economic Outlook report, which will be released next week. “The global financial sector can play a crucial role in catalysing private investment and accelerating the transition.”