IMF Economic Models Will Take Climate Into Account
The International Monetary Fund is adapting its macroeconomic models to take climate change into account, according to unconfirmed reports at a conference in London, UK last week.
Beginning with next year’s projections, “that means its much-cited World Economic Outlook could expose how moves to curb greenhouse gas emissions threaten growth in oil-exporting countries,” Climate Home reports.
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“I am committed to a stronger emphasis on financial inclusion, inequality, gender, and climate change—where we will focus on the macro-critical aspects of these issues,” Managing Director Christine Lagarde told the IMF’s annual meeting in Lima, Peru last month.
Oxford University environmental economist Ben Caldecott said the IMF’s decision “makes perfect sense,” adding that “it sort of kicks off a methodological conversation” among international agencies. (h/t to Corporate Knights for pointing us to this story)