Monday, June 24, 2024


Dhaka Tribune

The IMF’s climate support program should only be the start

 This is a win for us all

Update : 01 Feb 2023, 10:37 AM

One of the biggest injustices in human history has to be the fact that smaller, developing nations  are having to deal with the ravaging effects of climate change, a worldwide crisis that was largely triggered by the unchecked, early industrialization of developed countries.

This not only results in a severe impact on developing economies' capacity for growth but it has led to increased frequencies of natural disasters as a direct impact of climate change, which have their own economic implications.

And there are few nations that are better representatives of this injustice than Bangladesh, a nation that is at the forefront in the fight against climate change.

While COP27 last year resulted in the breakthrough agreement of a Loss and Damage fund for developing nations battling climate change, equally worthy of celebration is the recent announcement of the IMF's approval of a $4.7 billion support for Bangladesh.

The program, being offered at current exchange rates, includes $3.3bn under the IMF's Extended Credit Facility and Extended Fund Facility programs and $1.4bn under the new Resilience and Sustainability Facility, which is meant to help particularly vulnerable countries and island states.

This is indeed a win for us all.

With 47 LDCs accounting for about 3% of total global emissions -- yet paying the heaviest price in terms of loss and damage due to climate change -- it is good to see some semblance of accountability seeping into the global stage. However, in order for the tide to turn in any meaningful way, developed nations need to be part of this conversation as well. Not just in terms of climate reparations but in lowering their inordinate emissions as well.

The funds from the Resilience and Sustainability Facility stand to make a great impact on our nation's climate resilience moving forward, but climate change is going to be a war that we must all fight together.

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