In a recent interview with PTI, Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), lauded India for its ambitious objectives in reducing emissions and using solar power as the main source of energy. She commended India’s program to expand its use of green hydrogen and for its submission of long-term plans to achieve its net-zero emissions target by 2070.
Georgieva acknowledged the pressure on India to expand the use of resources due to the large population of nearly 1.4 billion people in the country that needs access to development opportunities. Despite this pressure, India is taking significant steps towards reducing its emissions intensity of GDP by 45% by the year 2030 from the 2005 level. Georgieva believes that India could take additional actions to achieve carbon neutrality even earlier than 2070 with the current ambition that the country demonstrates.
Georgieva also praised Prime Minister Narendra Modi for his leading role in the fight against climate change. She highlighted Modi’s emphasis on creating a culture in society that guards resources, not using more than what is needed, and being protective of nature, making him a good steward for the planet and future generations.
India has updated its Nationally Determined Contributions (NDCs) and submitted a long-term plan to achieve the net-zero target by 2070. At the same time, India has maintained that rich nations, responsible for a large share of historical emissions and global warming, must deliver technology and finance to help developing and poor countries fight climate change.
Georgieva also praised India’s strong performance as a “bright spot” in the global economy, with India alone expected to contribute more than 15% of global growth this year. She believes that emerging markets and developing economies will provide much of the momentum in global growth.
Georgieva sees India’s role in bringing countries together as critical, especially at a time of heightened uncertainties for the global economy and rising geopolitical tensions. She highlights the importance of the G20 Finance Ministers and Central Bank Governors meeting in Bengaluru and believes that India’s Unified Payments Interface is an excellent example of technology boosting financial inclusion.
Georgieva acknowledges that any new financial technology comes with risks, but the recent collapse of some prominent crypto exchanges has intensified concerns about market stability. She believes that India’s in-depth assessment of Central Bank Digital Currencies (CBDCs) could inform similar studies elsewhere and accelerate digital progress worldwide.
In summary, Georgieva’s interview highlighted India’s leading role in the fight against climate change, the importance of the country’s strong performance in the global economy, and its potential to bring countries together. She praised India for its ambitious objectives, use of green energy, and commitment to financial inclusion, while also acknowledging the challenges the country faces in phasing out coal use.