ABU DHABI, (Pakistan Point News - 12th Apr, 2023) Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and COP28 President-Designate, has called for fundamental reforms of International Financial Institutions (IFIs) and Multilateral Development Banks (MDBs) to achieve climate and development goals at the same time.
This came during his two-day visit to Washington, D.C., where he participated in the Spring Meetings of the World Bank Group and the International Monetary Fund (IMF).
During a series of engagements with ministers and leaders of international, multilateral and private finance institutions, including a roundtable hosted by Kristalina Georgieva, IMF Managing Director, and Mark Carney, UN Special Envoy for Climate Action and Finance, the COP28 President-Designate highlighted the need to make financing “more available, accessible and affordable” to allow “sustainable growth and prosperity for all”, particularly in the Global South. Dr. Al Jaber also emphasised the need to apply a business mindset and action-oriented approach to the COP Process in order to make transformational, inclusive progress.
Dr. Al Jaber’s visit was part of a global listening and engagement tour to meet with and hear the views of a range of partners across government, civil society, youth, the private sector, and international organisations and non-governmental organisations (NGOs). The tour takes place ahead of the 28th United Nations Conference of the Parties (COP28) which will be hosted by the UAE from 30th November to 12th December 2023.
Dr. Al Jaber said, “In the eight years since the Paris Agreement, we have seen how closely the goals of sustainable development and climate progress are interconnected. The impacts of climate change are clearly impeding development worldwide and the most vulnerable communities are affected the most – particularly the Global South.
“A key factor for success is capital and finance. But not enough is getting to the people and places that need it most. Only 20 percent of clean tech investments are going to developing countries that make up over 70 percent of the global population and the least developed countries receive less than 2 cents on every Dollar spent. Behind every number there are individual lives, people and communities who should have the right to fulfil their potential and contribute to sustainable global prosperity. The world needs to triple the amount of money by 2030 that is available for clean tech investment, adaptation finance and a just energy transition in emerging and developing countries.”
Dr. Al Jaber emphasised that the Global South needs a new deal on climate finance that addresses development and climate needs at the same time.
“As the UAE prepares to host COP28, my team and I have spent the last three months listening to and engaging with a broad set of stakeholders across the Global South. And what I hear over and over again is the fact that climate finance is nowhere near available, affordable or accessible enough. In terms of availability, we need to turn billions into trillions. When it comes to affordability, we need to deploy climate finance without burying the developing world in more debt. And on accessibility, we need to remove the bureaucratic hurdles that keep recipient countries waiting far too long to access the funds they desperately need.”
Dr. Al Jaber acknowledged the steps that have been taken but emphasised the need to go farther and faster.
“Last year, the World Bank Group released its Evolution Roadmap, which has begun to address the options for a path forward. Yet, more needs to be done and much more quickly. We need fundamental reform of IFIs and MDBs to achieve both climate and development goals. We need substantially more concessional finance that can reduce risk in lower income countries and attract private capital at a multiple. And we need to explore new instruments to drive private sector finance more effectively and more efficiently to emerging and developing nations/countries.”
The UAE has a long-standing record of engagement in many multilateral public private partnerships to deliver clean energy projects in developing nations around the world, including over 30 small island developing states, he noted.
Dr. Al Jaber added that the UAE is keen to partner with the multilateral community to build on this record. “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.”
Dignitaries Dr. Al Jaber spoke with during his trip included, Mia Mottley, Prime Minister of Barbados; Biman Prasad, Deputy Prime Minister, Fiji; Ken Ofori-Atta, Minister of Finance, Ghana; lipumbu Shiimi, Minister of Finance, Namibia; Damilola Ogunbiyi, UN Energy; IMF Managing Director Kristalina Georgieva; Mark Carney, UN Special Envoy for Climate Action and Finance; and John Kerry, United States Special Presidential Envoy for Climate since 2021.
Dr. Al Jaber’s Washington visit builds on his previous work to support reform for International Finance Institutions and Multilateral Development Banks, and for global powers to provide greater financial support for loss and damage financing for the climate vulnerable. In June, the COP28 President-Designate will attend the “Summit for a New Global Financial Pact” in France, hosted by French President Macron, where countries will discuss reform of international financial institutions to support financing for vulnerable nations.
