International Monetary Fund Managing Director Kristalina Georgieva said on Wednesday that countries need to shift some $7 trillion in direct and indirect annual subsidies for fossil fuels to help finance the fight against climate change.

Georgieva told the World Economic Forum in Davos, Switzerland that the total fossil fuel subsidies include $1.3 trillion in direct government subsidies as well as indirect subsidies that include failure to price carbon emissions, adding that this price needs to be set at $85 per ton by 2030.

(Reporting by David Lawder)