‘Loss & Damage Fund’ changes dynamics of climate action: Mohieldin 

Daily News Egypt
3 Min Read

Mahmoud Mohieldin, the UN Climate Change High-Level Champion for Egypt and UN Special Envoy on Financing the 2030 Sustainable Development Agenda, has called for a fourfold increase in climate finance to effectively implement climate action. This statement was made during his participation in the “Mobilizing Private Finance and Promoting Innovation in Renewables in the MENA Region” session at COP28, alongside notable figures such as Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade; Jay Collins, Deputy Chairperson of Banking at Citi; and May Nasrallah, Founder and Executive Chairperson of deNovo Partners.

Mohieldin emphasized the necessity for well-defined plans and binding agreements with precise timelines to finance climate initiatives. He cited the activation of the Loss and Damage Fund at the Dubai Conference, a year after its introduction at COP28 in Sharm El Sheikh, as an exemplar of swift and decisive climate action.

He elaborated on the private sector’s role, extending beyond financial contributions to include capacity building, innovation, and the implementation of practical solutions.

Mohieldin underscored the urgency of bolstering the capital of Multilateral Development Banks (MDBs), enacting more effective policies for climate and development financing, and supporting governments in crafting policies and regulatory frameworks that encourage climate action. He also advocated for increasing private sector engagement by mitigating financial and investment risks.

Addressing domestic finance mobilization, Mohieldin highlighted the need to resolve debt crises and integrate development plans from developing countries, with a significant role for the local private sector in finance mobilization.

He urged governments in developing nations to enhance their business environments and establish policies that stimulate climate and development initiatives, while also investing in human capital and essential services.

In a session he moderated, titled “Minimizing & Addressing Loss & Damage with Locally Led Adaptation & Risk-Transfer Financing Solutions,” Mohieldin stated that the Loss and Damage Fund alters the climate action landscape, underscoring the necessity to reevaluate mitigation and adaptation strategies.

He concluded by noting the fund’s broader mandate, which encompasses not only funding mobilization for loss and damage but also the provision of technical support, data, and capacity building to manage the effects of climate change.

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