During COP28 in Dubai, agreements were made to upscale climate actions before the decade’s end. More importantly, parties agreed to limit fossil fuels in a “just and equitable transition.” 

In his closing speech at the climate summit, UN Climate Change Executive Secretary Simon Stiell said, “Whilst we didn’t turn the page on the fossil fuel era in Dubai, this outcome is the beginning of the end. “Now all governments and businesses need to turn these pledges into real-economy outcomes, without delay.”

Now, the International Monetary Fund (IMF) has emphasized that cooperation is required to mitigate the effects of climate change and facilitate the green energy transition to build on agreements announced at COP28.

In its World Economic Outlook Update, the IMF called for strengthening resilience through multilateral cooperation. The report stated that intensified cooperation in areas of common interest is vital for mitigating the costs of separating the world economy into blocs.

The report added that safeguarding the transportation of critical minerals, restoring the World Trade Organisation’s ability to settle trade disputes, ensuring the responsible use of potentially disruptive new technologies, upgrading domestic regulatory frameworks, and harmonizing global principles are further priorities.

The report explained that as inflation declines toward target levels across regions, central banks are to deliver a smooth landing, neither lowering rates prematurely nor delaying such lowering too much.

At the same time, a renewed focus on fiscal consolidation is needed. Intensifying supply-enhancing reforms would facilitate inflation and debt reduction and enable a durable rise in living standards.