The chief of the world’s International Monetary Fund (IMF) said the world needs “to put our money where our mouth is” and find the $5 trillion needed for climate finance as she addressed the third day of COP28 talks in Dubai.

The wider topic of climate finance is a key issue under discussion at the UN conference, focusing on how countries will pay for mitigation – efforts to cut greenhouse gas emissions, and adaptation – adjusting to climate change.

Kristalina Georgieva, IMF Chief Executive Officer, delivered the keynote address at the Business and Philanthropy Forum on Saturday, saying: “We need to go from $900 million - where we are now to - $5 trillion to make decarbonization a reality and the question is, is $5 trillion, a lot of money?”

“Well, it’s obviously not a little but put $5 trillion next to $7.1 trillion direct and indirect subsidies, or next to the size of the world economy, which is over 100 trillion. I think we should be brave and say yes, it can be done.”

She said fossil fuel direct subsidies have reached a record $1.3 trillion this last year because of support measures that were caused by the cost-of-living crisis.

Georgieva also praised the UAE’s President Sheikh Mohamed bin Zayed, who on Friday pledged a $30 billion fund for climate financing under the country’s newly launched catalytic climate vehicle, ALTÉRRA, that will drive international efforts to create a fairer climate finance system, emphasizing improving access to funding for the Global South.