WASHINGTON, DC: Kristalina Georgieva, Managing Director of the International Monetary Fund, Dr. Sultan Al Jaber, Nominated for COP28 Presidency (GFANZ) Co-Chairs Roundtable at IMF Today to Urgently Accelerate Climate Action and Financing Discussed the actions to be taken. Roundtable participants included representatives of governments, international financial institutions, development banks, philanthropic organizations, and private financial institutions committed to net zero.
Climate change is one of the most important macroeconomic and monetary policy challenges facing IMF member countries in the coming decades. Capital is one of the most important enablers of climate action, but we are failing to get enough money to the people and places that need it most.
Massive global investment is needed to reduce emissions and build resilience, requiring a major shift in leveraging public and especially private finance. This includes substantially more concessional finance that can reduce risk and channel private sector funds more efficiently to emerging and developing economies. And both the public and private sectors will need to fund all elements of the energy transition. This includes both the scaling up of clean energy and the controlled phase-out of fossil fuels in an accelerated timeframe.
To this end, all countries need strong climate policies to accelerate the environmental transition and stronger mechanisms to foster cooperation and risk-sharing among stakeholders. For example, improved policies, regulations, technology, information frameworks and financial toolkits could help mobilize private capital and broaden the investor base, especially in emerging and developing economies.
Participants identified areas of work within their respective mandates to accelerate towards COP 28. Identify specific obstacles to private sector climate finance. We propose reforms to strengthen the macroeconomic and balance of payments stability of countries by reducing the risks associated with climate change. Increase private investment in emerging and developing countries using innovative financing instruments. The two leaders agreed to continue working together from now until his COP28 in Dubai and beyond to define and implement concrete measures towards their common goals.
Together, we can scale up climate finance so that the trillions of dollars we need are available as quickly as possible. We must find ways to accelerate partnerships between public and private finance to meet our climate goals.
IMF Managing Director Kristalina Georieva said: Stronger cooperation and partnerships across the public and private sectors are essential to get there, and there is no time to waste. ”
Mark Carney, UN Special Envoy on Climate Action and Finance and GFANZ Co-Chair, said: I salute the leadership of her Kristalina Georgieva, Managing Director of the IMF, and her incoming COP28 Presidency, Dr. Sultan Al Jaber, and work with them and other stakeholders to deliver progress this year. Looking forward to it. ”
Dr. Sultan bin Ahmed Al Jaber, nominated COP28 Presidency, said: For vulnerable communities in the Southern Hemisphere, climate finance is far from available, affordable or well-utilized.
“Only 20% of clean technology investments go to developing countries, which make up more than 70% of the world’s population, while the least developed countries receive less than 2 cents for every dollar spent. .
“Behind every number are individual lives, people and communities who should have the right to realize their potential and contribute to a sustainable and prosperous world.
“By 2030, the world needs to triple the amount of money available for investment in clean technology, adaptation finance, and a just energy transition in emerging and developing countries. Fundamental reforms need to be urgently considered to achieve both goals: significantly more concessional funds that can reduce risk in low-income countries and attract private capital in multiples; We also need to explore new avenues to more effectively and efficiently deliver private sector finance to emerging and developing economies.
“The UAE is preparing to host COP28 later this year. I want to apply business mindsets and action-oriented approaches to enable the transformational progress the world needs. And I hope we can find a way to rekindle the relationship between public and private finance to achieve development and climate change goals simultaneously.”
