Cutting emissions will hit growth, but costs of inaction much higher, says IMF

IMF says taking swift action to achieve 25% cut in greenhouse gases by end of decade will cost less than failing to act

Vital steps to reduce greenhouse gases by 25% by the end of the decade will lead to lower growth and higher inflation but the costs of inaction would be far greater, the International Monetary Fund has said.

The IMF said decades of procrastination meant what could have been a smooth transition to decarbonised economies would now be more challenging, and the world had to cut fossil fuel use by a quarter in eight years to have a chance of hitting the global climate crisis goals set in Paris in 2015.