BAKU, Azerbaijan, April 11. Effective policies
to encourage economic transformation can speed up green transition,
said Kristalina Georgieva, Managing Director of the IMF, Trend reports.

She delivered the remark during the event held by the Atlantic
Council as a part of the IMF’s World Economic Outlook
publication.

“Even more can be achieved with policies to encourage economic
transformation — to speed up the green and digital transition. How
well we handle them will define the legacy of this decade. This is
particularly important for the green transition. How quickly we
advance it will have tremendous significance for whether we succeed
to tame climate risks. But the shift to a climate friendly economy
goes beyond managing risks. It also offers tremendous opportunities
for investment, jobs, and growth,” she said.

The managing director noted that the economic, health and
environmental benefits of transformative investments are already
visible – including in renewable energy, electric mobility, and
ecosystems restoration.

“For every $1 spent on fossil fuels, $1.7 is now spent on clean
energy. Five years ago, this ratio was 1:1. But robust policies and
institutions are needed for a stable and encouraging investment
climate and to tackle a broad range of market failures,” added
Georgieva.

Thus, the IMF suggest that essential reforms, such as enhancing
governance, reducing bureaucratic hurdles, boosting female
workforce participation, and facilitating access to capital, are
all pivotal. A carefully coordinated set of reforms across emerging
and developing nations could potentially elevate output by 8
percent within a span of four years.