IMF: ‘Social Contract’ for Climate Change Needed

Sudan Events – Sumaya Sayed

Governments and their people need a “new social contract” to be forged if climate change action is to be at the heart of society.
Jihad Azour, the International Monetary Fund’s director for the Middle East and North Africa, said “difficult conversations” lay ahead when it comes to political decisions such as the cutting of fuel subsidies – which nations collectively spend $7 trillion per year on.
He further said there has already been backtracking on climate pledges by some nations, at a time when billions, if not trillions, must be diverted to renewables and mitigation.
“There are policy issues that would require strong political support,” he told The National at Cop28.
“We see even advanced economies, including in Europe, that are very much sensitive to climate issues.”
Rishi Sunak’s UK government recently backtracked on key climate targets as it draws election battle lines, while the Netherlands is in political limbo following a tetchy election campaign in which climate spending was seized on by radical parties.
Part of the challenge will be overcome given that this generation of young people are so climate-minded, he said.
“We see some backtracking because, yes, climate would require investment, would require effort… this is part of the social contract of the future.
“This is a big transformative issue. That has to be at the at the core of the new social
contract.”