Dr. Mahmoud Mohieldin, UN Climate Change High Level Champion for Egypt and UN Special Envoy on Financing 2030 Sustainable Development Agenda, said that financing development and climate requires developing the performance of MDBs and IFIs, as well as stimulating the mobilization of financing from domestic resources.
This came during his participation in a pre G20 Summit press briefing entitled “G20 SUMMIT:
How to fix the world's broken financial system and fund a fairer future” organized by ONE Campaign, attended by Bogolo Kenewendo, UN Climate Change High-Level Chompions' Scecial Advisor, Kalpana Kochhar, Director of Development Policy and Finance at Gates Foundation and a former director at the IMF, Carlos Alvarado Quesada, Former President of Costa Rica, and Gayle Smith, CEO of ONE Campaign and former administrator of USAID.
Mohieldin stated that financing climate and development action is insufficient, unfair, inefficient and biased, explaining that climate activities alone requires financing of $2.5 trillion annually, while developed countries have not so far met the $100 billion pledged in 2009 to finance climate action in developing countries annually.
“The global financing system reform requires the rapid development of the policies and performance of MDBs and IFIs by increasing their capital so that they can meet the requirements of development and climate action, and adopting new policies of concessional financing that include low interest rates, long-term repayment and grace periods.” Mohieldin clarified, stressing the need to make concessional finance available to middle-income countries along with low-income countries.
He emphasized that climate and development finance must take into account the debt crises in developing countries, which requires financing institutions and development banks to quickly activate debt management mechanisms, and support risk mitigation tools of financing climate and development projects -such as credit insurance and credit enhancement- to encourage the private sector to participate in financing and implementing these projects, as well as the need to activate innovative finance tools and debt swaps for investment in nature and climate.
He referred to the efforts made by some funding institutions to mobilize finance for development and climate action, including the Green Climate Fund (GCF), whose replenishment has achieved positive results by increasing the contributions of member states.
“Although there is a finance crisis, opportunities to address this crisis still exist and must be quickly seized.” Mohieldin said, expressing his hope that regional and international events to be held in the coming weeks before COP28 will contribute to finding effective solutions to the climate and development finance crisis.
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