IMF's suggestion to hasten transition to low-carbon economy should be viewed with low-income economies in mind: Sitharaman

The International Monetary Fund's (IMF) Global Policy Agenda's suggestion to hasten the transition to a low-carbon economy needs to be viewed in the context of its implications for the emerging market and low-income economies, said Finance Minister Nirmala Sitharaman on Thursday.

While speaking at the virtual Plenary Meeting of the International Monetary and Financial Committee of the Board of Governors of the IMF, Sitharaman further emphasised that the burden of economic transformation to a low carbon economy would disproportionately be higher for these countries, and positive benefits may not accrue in the short run.

"The GPA's suggestion to hasten the transition to a low-carbon economy for promoting growth that benefits all need to be viewed in the context of its implications for the emerging market and developing economies and low-income economies. The burden of economic transformation to a low carbon economy would disproportionately be higher for these countries, and positive benefits may not accrue in the short run. The focus needs to remain on the agreed principles of equity and differentiated responsibility of climate action," a statement quoted the Finance Minister as saying

The meeting was attended by Governors/Alternate Governors representing 190 member countries of the IMF. The IMFC meets twice a year, once during the Fund-Bank Spring Meetings in April, and again during the Annual Meetings in October.

( With inputs from ANI )