The head of the International Monetary Fund (IMF) told an economic conference in the Saudia Arabian capital Riyadh: “If we don’t do anything about climate change now, in 50 years’ time we will be toasted, roasted and grilled.”
Speaking at the Future Investment Initiative she said: “Decisions are needed at this point in time, which will probably mean that in 50 years’ time oil will be a secondary commodity.”
The IMF chief said both climate change and inequality were “two key issues” that would drive us to either utopia or dystopia. She said: “If we don’t address those two issues — of climate change and growing inequalities — we will be moving towards a dark 50 years from now.”
Speaking on the same panel as Ms Lagarde was Amin Nasser, president and chief executive of Saudi Aramco.
He said: ”Alternatives, electric cars and renewables, are definitely gaining market share, making a lot of progress and we are witnessing that.
“However, it will be decades before they take a major share of the global energy supply.”
It is the second such warning in a matter of weeks from the influential organisation
Earlier this month it warned climate change could be “potentially catastrophic” to global society and said richer nations must do more to support poorer countries in mitigating and adapting to its impacts.
The IMF’s latest World Economic Outlook report said: “Advanced and emerging market economies have contributed the lion’s share to actual and projected climate change.
“Helping low-income developing countries cope with the consequences of climate change is both a humanitarian imperative and sound global economic policy that helps offset countries’ failure to fully internalise the costs of greenhouse gas emissions.”
Around 195 countries signed the Paris climate agreement in 2015 which established goals to reduce the emission of greenhouse gases in a bid to prevent temperatures around the world rising by more than two degrees in around 50 years.
But US President Donald Trump has announced the country will pull out of the accord as it was not in America’s interest.
In a statement following her visit, Ms Lagarde praised Saudi reform efforts and moves to address the economic effects of persistently low oil prices.
She said: ”Saudi Arabia is also undertaking reforms to reduce constraints to women entering the workforce,” pointing to a recent decision to allow women to drive.