The world is at a turning point on climate change on the eve of the global COP26 meeting in Glasgow next week, IMF Managing Director Kristalina said Thursday (October 28) in Washington, DC.

“The world faces a choice. Either we choose deep reductions in greenhouse gas emissions in the coming decades or we choose severe, widespread, and irreversible damage to our planet, with grave human and economic consequences.  If those are our options, is it really a choice? The right path forward is so clear. To keep global warming to 1 point 5 to 2 degrees Celsius, we need to cut global emissions by between one quarter and one half by 2030 and reach net zero by 2050,” warned Georgieva.

A pioneer in the field of environmental economics, Georgieva has warned that the impact of climate change on global growth could be staggering.

“Climate change presents a major threat to long-term growth and prosperity, and it has a direct impact on the economic wellbeing and financial stability of all countries.  

 How we address climate change matters in reducing risks to people, communities and economies, and it matters because it’s also an opportunity for green growth and green jobs.”

Georgieva laid out her policy priorities that she will be bringing to the Summit of world leaders including incentivizing transition away from fossil fuels by implementing carbon pricing and investing in green infrastructure and energy production.

“We need to see a massive transformation across all economies, so they become low-carbon and climate resilient.  First, that means a robust price on carbon to incentivize the switch to renewables and energy efficiency. By 2030, we need a global price of at least 75 dollars a ton.  Second, we want to see significant scaling-up of public investment in resilient infrastructure and green R&D.  And third, a just transition is critical—through technology transfers and through climate finance where the international community must meet its commitment to provide $100 billion per year to developing countries.   And also within countries: Helping those communities and people that are effected negatively by the Green transition.”

See more on the Fund’s work and research on climate change at The IMF and Climate Change