Multilateral development banks can also play a pivotal role in stimulating the private sector to participate in climate finance by expanding risk reduction tools and hybrid financing mechanisms, according to Minister of International Cooperation Rania Al-Mashat.
Her remarks came during her participation in the World Economic Forum’s (WEF) panel discussion on the “Geo-Economics of Climate Change”, as part of the 77th United Nations General Assembly (UNGA) in New York.
This session also included the President and CEO of Bezos Earth Fund, Andrew Steer; CEO of Yara International, Svein Tore Holsether; and Finland’s Minister for Development Ville Skinnari. It was moderated by WEF President Børge Brende.
Al-Mashat said that the climate agenda had become a priority for the international community, in light of the challenges posed by climate change and its impact on development efforts, coupled with the aftermath of the COVID-19 crisis. The Minister emphasized that everyone is required to play an active role in addressing climate change, whether international finance institutions, governments, civil society, non-profit organizations and the private sector.
The common goal, on a global level, is to move from climate pledges to implementation; transforming the financial commitments made at COP26 into realistic actions. “This is indeed the goal of Egypt’s COP27 presidency, as it works to galvanize the international community to fulfill commitments and encourage climate change adaptation efforts,” Al-Mashat stated.
The Minister added that multilateral development banks can also play a pivotal role in stimulating the private sector to participate in climate finance by expanding risk reduction tools and hybrid financing mechanisms.
In less than 50 days, the COP27, as well as the G-20 Summit, will be held, thus presenting an opportunity to highlight the needs of the countries of the South. It also emphasizes the importance of these countries in being at the center of the international community’s attention to strengthen development efforts and to expand climate financing. It is important to note that Africa is one of the least emitters, and is yet most affected by climate change due to water scarcity, desertification and food insecurity.
In order to support international efforts to finance climate change adaptation projects, the Egyptian Presidency of the COP27 is convening five regional forums in Asia, Africa, and Europe, supporting countries in showcasing their pilot investment-friendly climate action projects and promoting regional integration in climate action and the green transformation.
The Minister stressed that there is a common denominator between climate and development, as “we cannot see them as separate pillars,” noting that any financing provided for climate action is essentially financing for development.
Al-Mashat highlighted Egypt’s efforts to promote climate action and stimulate the transition from pledges to implementation through its COP27 presidency. To that end, the Minister also discussed Egypt’s Country Platform for NWFE Program, the nexus of water, food and energy sectors. This brings together all development partners, with the private sector and the Glasgow Financial Alliance for Net Zero (GFANZ), to provide development financing, technical support, capacity-building and private sector investments for the programme’s list of projects.
The 77th UN General Assembly (UNGA) was held under the theme, “A Watershed Moment: Transformative Solutions to Interlocking Challenges”, to address the triple crises of COVID-19, climate change and Russian-Ukrainian crisis. The meetings discuss a number of important topics, notably food insecurity, energy prices, and disruptions to global supply chains.