International Monetary Fund chief Christine Lagarde opened the last panel discussion at this year’s Davos by talking about climate change.
The final panel of the conference typically features central bankers and other economic heavyweights, and the discussion tends to focus on the economic outlook for the coming year.
But Lagarde made it clear that climate change is now at the heart of the debate.
Her panelists agreed.
“If temperatures go up two and half degrees, we’ll lose 15% of the world GDP. Three degrees, we will lose 25%,” said Kristalina Georgieva, the CEO of the World Bank.
The first thing she thinks needs to be done? Eliminate fossil fuels subsidies.
“We have done some, we have shrunk [subsidies] by half, but we still have $300 billion to go … it has to happen faster,” said Georgieva.