(MENAFN- Trend News Agency)
BAKU, Azerbaijan, October 17. Multilateral
Development Banks (MDBs) and global financial institutions hold a
critical role in accelerating the transition to a green economy,
said Simon Stiell, Executive Secretary of UN Climate Change, as he
addressed the participants of a virtual event hosted by the
Brookings Institution ahead of COP29, Trend reports.
"International climate finance must grow up, step up, and scale
up to meet this moment," Stiell said.
He highlighted the upcoming World bank Annual Meetings, which he
sees as a pivotal moment for advancing climate finance. "The World
Bank and IMF are at the heart of this transition. Just this week,
the World Bank announced more concessional lending for climate, and
the IMF is incorporating climate action and risks across their
work," he noted. While acknowledging this progress, Stiell warned
that incremental changes will not be enough to trigger the
exponential surge of green investments needed to protect the global
economy.
"The need for speed in climate finance is undeniable," Stiell
stressed. "Without much larger-scale funding, all economies will
face significant challenges. Many countries are already struggling
with crippling debt, making it nearly impossible to invest in
climate action".
As the world's financial leaders convene, Stiell urged further
steps to ensure that developing nations, often the most vulnerable
to climate impacts, are given the resources and fiscal flexibility
necessary to invest in climate resilience. "At the Annuals, we must
see clear signals that the World Bank and IMF are committed to
ensuring developing countries have the funds and fiscal space for
climate action, not devastating debt burdens and soaring capital
costs," he stated.
Debt relief, alongside the introduction of climate-related debt
clauses and replenishing the World Bank's International Development
Association (IDA), were suggested as immediate measures. Stiell
also called on G20 countries, which are the largest shareholders in
these institutions, to fully fund MDBs and push for broader reforms
in the global financial system. "The G20, under Brazil's
leadership, has finally brought climate and finance ministers
together. This collaboration must continue and result in concrete
outcomes," he said.
Stiell emphasized that progress in climate finance beyond the
formal negotiation process at events like COP29 is vital for the
success of international climate agreements such as the Paris
Accord. "If we fail at either, it could deal a devastating blow to
crucial parts of the Paris Agreement," he warned.
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