WASHINGTON: Kristalina Georgieva, Managing Director of the Worldwide Financial Fund (IMF), Dr. Sultan bin Ahmed Al Jaber, UAE Minister of Trade and Superior Expertise and COP28 President-Designate, and Mark Carney, UN Particular Envoy for Climate Action and Finance and Co-Chair of the Glasgow Monetary Alliance for Internet Zero (GFANZ), immediately co-chaired a roundtable dialogue hosted on the IMF to debate actions wanted to urgently speed up climate action and finance.
The contributors included representatives from governments, worldwide monetary establishments, growth banks, philanthropic organisations, and non-public monetary establishments dedicated to internet zero.
The joint statement reads:
“Climate change is among the most important macroeconomic and monetary coverage challenges that IMF members face in coming a long time. Capital is among the many most vital enablers of climate action, however not sufficient is attending to the individuals and locations that want it most.
As huge world investments to cut back emissions and increase resilience are required – we’d like a significant shift to harness public and, particularly, non-public financing. That features considerably extra concessional finance that may decrease danger and drive non-public sector finance extra effectively to rising and creating international locations. It additionally requires that each the general public and non-public sectors finance all elements of the vitality transition, together with each the scaling of fresh vitality and the managed phaseout of fossil fuels on an accelerated time-frame.
To attain this goal, all international locations want sturdy climate insurance policies that speed up the inexperienced transition, and stronger mechanisms to advertise cooperation and risk-sharing amongst stakeholders. For instance, improved coverage, regulatory, technological and info frameworks and monetary toolkits may assist non-public capital mobilisation, and broaden the investor base, particularly in rising and creating economies.
By working collectively, we may help scale up climate finance so the trillions of {dollars} which are wanted are change into accessible as quick as potential. We should discover pathways to speed up the partnership between public and non-public finance to fulfill climate objectives.”
Areas of labor to be accelerated on highway to COP28
Individuals recognized areas of labor inside their respective mandates to be accelerated on the highway to COP 28, together with: making the funding atmosphere extra conducive to climate finance; figuring out particular obstacles that impede non-public sector climate finance; proposing reforms to assist strengthen international locations’ macroeconomic and steadiness of funds stability by lowering dangers related to climate change; and utilizing revolutionary financing devices to scale up non-public funding in rising and creating economies. They agreed to proceed to collaborate between now and COP28 in Dubai, and past to outline and implement particular measures towards shared objectives.
IMF Managing Director Kristalina Georgieva famous, “The impacts of global warming are already destroying lives and livelihoods, so we need a step change in our financing approach to redirect trillions of dollars towards meeting the climate challenge. To get there, stronger cooperation and partnerships across the public and private sector are vital – there is no time to waste.”
UN Particular Envoy on Climate Action and Finance and GFANZ Co-Chair Mark Carney acknowledged, “To ensure that the impact of the net-zero revolution underway in private finance benefits all countries, we need a more efficient and effective multilateral financial architecture. I salute the leadership of Kristalina Georgieva, Managing Director of the IMF, and Dr. Sultan Al Jaber, President-Designate of COP28, on this imperative, and look forward to partnering with them and other stakeholders to deliver progress this year.”
COP28 President-Designate Dr. Sultan Al Jaber stated, “Capital and finance are among the many most vital enablers of climate action and sustainable financial growth, however not sufficient is attending to the individuals and locations that want it most. For weak communities, throughout the worldwide south, climate finance is nowhere close to accessible, reasonably priced, or accessible sufficient.
“Solely 20 p.c of fresh tech funding goes to creating international locations that make up over 70 p.c of the worldwide inhabitants, and the least developed international locations obtain lower than 2 cents on each greenback spent.
“Behind each quantity there are particular person lives, individuals and communities who ought to have the fitting to fulfil their potential and contribute to sustainable world prosperity.
“The world must triple the sum of money by 2030 that’s accessible for clear tech funding, adaptation finance, and a simply vitality transition in rising and creating international locations. We have to urgently contemplate elementary reform to realize each climate and growth objectives. We want considerably extra concessional finance that may decrease danger in decrease revenue international locations and appeal to non-public capital at a a number of. And we have to discover new devices to drive non-public sector finance extra successfully and extra effectively to rising and creating states.
“As the UAE prepares to host COP28 later this year, I am keen to apply a business mindset and action-oriented approach to enable the transformational progress the world needs. And I am hopeful that we can find pathways to reignite the relationship between public and private finance to meet development and climate goals at the same time.”
