WASHINGTON (Sputnik) — Lagarde made the statement ahead of the UN Climate Conference in Paris, scheduled for November 30 through December 11, which will focus on global warming and ways to decrease greenhouse gas emissions.
"Carbon pricing should be the centerpiece of climate mitigation efforts — but choosing the right instrument, and designing it to suit national conditions, are critical for meeting mitigation objectives at lowest cost," Lagarde stated.
She noted that climate change will have a significant economic impact on many countries, and lower income countries, as well as small island states, are particularly at risk.
"Macroeconomic policies in these countries will need to be calibrated to accommodate more frequent weather shocks," Lagarde pointed out.
Climate change, Lagarde added, poses significant risks for macroeconomic performance and requires appropriate policy responses, and IMF staff will cooperate with international institutions to develop frameworks for risk assessment and resilience.
