Mahmoud Mohieldin, UN Climate Change High-Level Champion for Egypt and UN Special Envoy on Financing the 2030 Sustainable Development Agenda, said Tuesday that reforming the global finance system and adjusting the policies of IFIs and MDBs have become necessary to achieve just green transition.
Mohieldin made the remarks during his participation in the meetings of the 2023 Forum of the UNFCCC Standing Committee on Finance (SCF) on Financing Just Transitions in Bangkok.
“The current financing system does not contribute as required to the desired rapid implementation of green transitions,” Mohieldin said. “The current financing of climate and development action is insufficient, inefficient and unfair.”
He called for a more effective global financing system that is more capable to deal with the requirements of climate and development action.
“There is a need to maximize the role of existing IFIs and MDBs by increasing their capital and adopting more effective policies for concessional financing and providing technical support,” Mohieldin said. “These new policies will encourage the private sector to participate more in financing and implementing climate projects.”
Mohieldin confirmed the need to reduce dependence on debt as a financing method of climate and development action by activating debt reduction mechanisms, foremost of which are debt swaps for investment in nature and climate, operating carbon markets, and increasing public and private sector partnerships.
He called for strengthening climate action at four levels: the global level, the regional level, the national level, and the local level.
“The process of equitable transition requires the availability of fair and adequate financing, the implementation of technological solutions, and the change of ideas and policies of all actors in climate and development action,” Mohieldin said.
The meeting witnessed the participation of Ambassador Mohamed Nasr, Director of the Department of Climate Change, Environment and Sustainable Development at the Ministry of Foreign Affairs, Katarzyna Kowalska, SCF Member, Jiravat Ratisoontorn, Deputy Secretary General of Office of Natural Resources and Environmental Policy and Planning at Ministry of Natural Resources and Environment of Thailand, Simon Stiell, Executive Secretary of UNFCCC, Hamza Ali Malik, Executive Secretary of UNESCAP, Chihoko Asada-Miyakawa, Assistant Director-General and Regional Director of International Labour Organization, and a number of international organizations officials, academics and economists from many countries.