I want to start with congratulations to the UAE, our host country, on their National Day – and for welcoming us all to COP28.

So why am I here? Why is the International Monetary Fund part of this discussion?

We are here because climate risks are macro critical. They hit economies, communities, and households dramatically. They can cause financial instability. But we are also here because the transition to the new climate economy offers unique opportunities for green growth and jobs.

We are here in a rather difficult time for the world, in a more shock-prone environment. Since 2020, we have experienced unthinkable events: COVID, then war in Ukraine, a cost-of-living crisis, and now conflict in this region.

While we have seen resilience in the world economy, we recognize that global economic growth is slow. At the IMF we project growth of just 3 percent year-on-year for the next five years. This is almost a whole percentage point below the average from the previous decade, when annual growth averaged 3.8 percent.

On top of this come geopolitical tensions that cause economic fragmentation, and it is in this context that we also face a climate crisis. So, the question to all of us – here at COP and beyond – is whether we can address this crisis effectively?

I can confirm that IMF research shows we have a lot more work to do. When we look at the total of all Nationally Determined Contributions for this decade, they add up to a cut in emissions of just 11 percent, whereas keeping “1.5 degrees alive” would require cuts of between 25 percent and 50 percent.

We are also very concerned that there is inequality within and across countries. Those that are hit harder by shocks that can lead to a dangerous........

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