IMF to revamp key unit as U.S. objects to climate, gender stance

The International Monetary Fund plans to reorganize some divisions that deal with climate change and gender policies, according to people familiar with the matter, after the Trump administration criticized its work in those areas.

The revamp will involve merging the Fund’s Climate and Development Policies Division and its Inclusion and Gender Unit into a new arm titled Macro-Financial and Structural Policies Division, the people said, asking not to be identified because the changes are not public.

The shake-up is due to be completed by the time of the IMF and World Bank’s mid-October meetings in Washington, the people said.

At the last such gathering in April, U.S. Treasury Secretary Scott Bessent said the Fund “devotes disproportionate time and resources to work on climate change, gender and social issues.” He said the lender was suffering from “mission creep” and should return to its core role as economic stabilizer.

The Biden administration had also expressed doubts about the IMF’s focus on climate change. The U.S. is the Fund’s largest shareholder.

The proposed changes will take place inside the IMF’s broader Strategy, Policy and Review department – a key unit that’s in charge of the design, implementation and evaluation of Fund policies, including shaping financing programs.

A spokesperson for the IMF did not immediately reply to a request for comment.

Earlier this year, after Bessent’s criticism, IMF chief Kristalina Georgieva downplayed the organization’s work on climate change. “People think we have climate experts, we don’t,” she said. “That’s not our job.”

Three years ago, during Georgieva’s first term as managing director, the IMF set up a Resilience and Sustainability Trust credit facility. More than 20 countries have received loans under it, including Egypt, Kenya and Costa Rica.

The program complements existing IMF tools by “providing longer-term, affordable financing to address longer-term challenges, including climate change and pandemic preparedness,” according to the Fund’s website.