Dr. Mahmoud Mohieldin, UN Climate Change High Level Champion for Egypt and UN Special Envoy on Financing 2030 Sustainable Development Agenda, stressed the necessity to strengthen the role of private sector and corporates in climate action according to clear environmental, social and governance standards.
Mohieldin said, during his participation in Competent Boards Meeting On Climate Change and Boards' Accountability, that more efforts must be done by all parties, especially private sector and corporates, to get climate action back on track that achieves the goals agreed in the Paris Agreement and the 2030 Agenda for Sustainable Development.
Mohieldin explained that the increasing negative impacts of climate change on the global economy as a whole, and on private sector and corporates in particular, entails strengthening the role of the private sector and corporates in financing and implementing climate action, with the need to define clear criteria for environmental practices and climate action governance for these sectors.
“The controversy over what can be considered green or non-green practices and related concerns about green washing can be overcome by agreeing on clear and credible standards for the environmental practices of companies and the private sector.” Mohieldin said, adding that this work could be guided by the International Financial Reporting Standards (IFRS), the standards set by the International Organization for Standards (ISO), as well as the recommendations of the United Nations High-Level Group of Experts formed by UN Secretary General to prepare a report on NSAs commitments for achieving net zero emissions, explaining in this regard that a number of countries have made progress in developing legislation governing the environmental and social practices of private sector and corporates.
Mohieldin emphasized the need to enhance the participation of the private sector in financing and implementing climate adaptation activities, saying that Sharm El Sheikh Adaptation Agenda (SAA) launched by the Egyptian Presidency of COP27 in cooperation with the HLCs has identified key areas of work and clear pathways for financing and investment in adaptation activities. He added that the Five Regional Roundtables Initiative, launched by Egypt presidency of COP27, UN regional economic commissions and HLCs, and joined by UAE presidency of COP28 this year, has also resulted in a set of promising adaptation and mitigation projects that are bankable, investable and implementable.
In this context, the climate champion confirmed the need to scale public-private partnerships (PPPs) and to enhance the participation of IFIs and MDBs in financing and implementing adaptation activities through the adoption of new concessional finance policies, and contributing to de-risking financing and investing in these activities to encourage the participation of the private sector.
Mohieldin underlined the importance of activating innovative finance instruments, taking advantage of voluntary and compliance carbon markets in developing countries and emerging markets, and swapping debt for investment in nature and climate.
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