Page 9 - Policy Economic Report - June 2024
P. 9
POLICY AND ECONOMIC REPORT
OIL & GAS MARKET
Figure 4: Government debt 2024 2019
Percent of GDP EMDEs excl. China LICs
70
60
50
40
30
20
10
0
EMDEs
• Decarbonizing the global economy will require sizable investments and financing, yet policies
worldwide remain inadequate to meet global climate goals. Reaching net zero by 2050 will require
cutting greenhouse gas emissions by between one-fourth and one-half by 2030 relative to 2019;
however, current global commitments are estimated to reduce emissions by only about 10 percent by
the end of this decade.
• In EMDEs, the amount of investment spending needed to tackle development goals and reduce
emissions by 73 percent by 2050 ranges from about 1 to 10 percent of GDP per year. The cost of
achieving these goals will increase further if progress is delayed. In EMDEs, mobilizing public resources,
including through subsidy reforms and carbon pricing, can help finance the needed public investments
and social transfers to ensure a low-emission and equitable development pathway. This can be
complemented with measures to attract private investment, including policies that strengthen the
regulatory environment and tackle corruption.
• Strong global cooperation is also needed to increase access to financing to address climate change,
especially for vulnerable countries facing significant budgetary constraints.
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