What is the IMF's new climate fund and how does it work?

The IMF has established the Resilience and Sustainability Facility (RSF), part of a $50 billion Trust, to provide affordable, long-term financing to low-income and vulnerable middle-income countries. The fund supports policy reforms to mitigate risks from climate change and pandemics, with Rwanda being the first African nation to receive $319 million in funding.

• The Resilience and Sustainability Facility (RSF) is a loan fund designed to assist low-income countries, vulnerable middle-income countries, and small states in addressing long-term challenges, specifically climate change and pandemics. It is part of the broader Resilience and Sustainability Trust, which has a total fund of $50 billion.
• Eligibility for the RSF extends to approximately 75% of the IMF's 190 member countries. To access funding, countries must maintain sustainable debt levels, be part of an IMF support programme, and demonstrate policy reforms aimed at reducing the impacts of pandemics or climate change events.
• The IMF estimates that the costs associated with the COVID-19 pandemic could reach nearly $14 trillion by 2024, highlighting the need for the RSF to help governments prepare for future pandemic risks to avoid costs that could overwhelm national budgets.
• Rwanda is the first African nation to receive RSF funding, securing approximately $319 million to enhance climate resilience. This funding is tied to reforms including the strengthening of disaster-risk reduction and management and improved reporting of climate-related spending; Rwanda has also committed to a 38% reduction in greenhouse gas emissions by 2030.

APA

Masterson, V. (2023). What is the IMF's new climate fund and how does it work? World Economic Forum. https://www.weforum.org/stories/climate-action/imf-resilience-and-sustainability-fund/

Chicago

Masterson, Victoria. What is the IMF's new climate fund and how does it work? World Economic Forum, 2023. https://www.weforum.org/stories/climate-action/imf-resilience-and-sustainability-fund/.

Wikipedia

{{cite report |last1=Masterson |first1=Victoria |title=What is the IMF's new climate fund and how does it work? |publisher=World Economic Forum |date=12 January 2023 |url=https://www.weforum.org/stories/climate-action/imf-resilience-and-sustainability-fund/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{masterson2023what, author = {Masterson, Victoria}, title = {{What is the IMF's new climate fund and how does it work?}}, institution = {World Economic Forum}, year = {2023}, month = jan, url = {https://www.weforum.org/stories/climate-action/imf-resilience-and-sustainability-fund/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }