The International Monetary Fund (IMF) criticizes the lack of action by international governments to meet environmental targets.

After "decades of procrastination on climate policies" it has become clear to the entity that it is "increasingly urgent to act now," warning that greenhouse gas (GHG) emissions must be cut by 25% by 2030 to meet the Paris Agreement goals.

In an analysis of the impacts of decarbonization at the macroeconomic level, the IMF stresses that to limit the global average temperature by 1.5 º C, as defined in the Paris Agreement, signed in 2015, will require "unprecedented efforts" that would represent "a serious acceleration" of commitments in relation to the previous decade. And at a time when the European bloc is going through an energy crisis, caused by the war in Ukraine, the IMF argues that this is the ideal opportunity to accelerate the energy transition.

How much will the transition cost? "It depends largely on how quickly electricity generation can be decarbonized," the IMF responds. "The more difficult the transition to clean electricity, the higher the macroeconomic costs in terms of [GDP] growth and inflation," it explains.

Still, "these expenses are manageable" and "easily outweighed by the many long-term benefits", whether in production, financial stability, or health, it says. According to the IMF, depending on the rate at which power generation can be sourced from low-carbon technologies, the costs of decarbonization could weigh between 0.15 and 0.25 percentage points on gross domestic product growth. Cumulatively, it would add between 0.1 and 0.4 percentage points annually to inflation.