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COP28 President-designate and Minister of Industry and Advanced Technology, Sultan Al Jaber, talked about the importance of implementing a new climate finance framework during a meeting of The Independent High-Level Expert Group on Climate Finance, which took place at Abu Dhabi Global Market on Tuesday and Wednesday.
The new roadmap highlights the role of the private sector in delivering increased finance and addressing debt distress in vulnerable countries.
Attendees at the meeting called for a significant increase in private investment to help meet the estimated annual investment of $2.4 trillion needed by 2030 to address climate change in emerging markets and developing economies.
“Climate finance has divided the international community and held back progress in tackling climate change and supporting countries most impacted by it,” said Al Jaber, “But climate finance is the issue that lies at the core of the COP28 agenda because finance is how we transform goals into reality,” He added.
Fixing climate finance is one of the four action pillars listed for COP28, ensuring full inclusivity, fast-tracking the energy transition, and addressing lives and livelihoods.
The new framework will guide all institutions, including the International Monetary Fund (IMF), UN agencies, the World Bank, regional MDBs, national governments, and the private sector.
“All forms of finance must be made more available, more accessible, and more affordable. [Multilateral development banks] must be adequately capitalized and provide much more concessional finance to lower risk and bring more private capital to the table,” Al Jaber said.
The attendees unanimously agreed that their top priority would be significantly increasing international climate finance in the next decade to help emerging markets and developing economies with mitigation and adaptation initiatives.
“The IMF is committed to ensuring climate policy support and finance reach those most in need…We look forward to partnering with all stakeholders in the lead-up to COP28 and working to drive stronger partnerships between the public and private sector for climate success,” said Kristalina Georgieva, Managing Director of the IMF
Lord Nicholas Stern, co-chair of the IHLEG, said, “This is a moment where all stakeholders must step up, including the MDBs, their shareholders, and the private sector.”
Alongside its work with the IHLEG, the COP28 presidency is working with multiple partners to increase international climate finance, including the G20 High-Level expert group, Germany, and Canada, to progress the delivery of the $100-billion commitment.
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