African countries made impassioned and detailed statements on how the global finance architecture should change at this year’s UN General Assembly. The SDG Summit also highlighted key climate finance reforms needed. However, action was lacking at the Climate Ambition Summit, where GCF pledges were underwhelming.
Looking towards the IMF and World Bank Annual Meetings on 9 October in Marrakech, expectations are that climate related reforms should go beyond much needed capital increases and the re-channeling of SDRs. We discuss a recent report by the African Climate Foundation of what these reforms should entail.
Interview with Egypt’s Lead Climate Change Negotiator, Ambassador Mohamed Nasr, on Climate Finance and the Africa Climate Summit
We spoke with Egypt’s chief climate negotiator, Ambassador Mohamed Nasr, who headed the COP27 Presidency’s team and led many of the negotiation tracks at COP27 in Egypt last year, about his thoughts on climate finance, Africa’s priorities and the upcoming African Climate Summit.
Building a financing ecosystem that works for Africa requires a systemic transformation of existing approaches to debt, lending practices, the global development finance system, tax and trade. These measures should address the continent’s debt overhang, create a fairer financial ecosystem, and unlock financial flows while preserving fiscal sovereignty.
Adaptation investment planning spur investments in prioritised projects and support the the implementation of adaptation and resilience measures in Africa. In this analysis, Sarah Wewege and Chipo Rusere discuss the advantages of this approach and how it can present a compelling case for investment.
The US, the UK and a handful of developed countries have pushed back on climate finance language within a draft declaration on the SDGs ahead of the SDG summit in New York in September. Issues of contention included the manner in which calls to reform the international financial system were phrased, and the establishment of a multibillion-dollar development stimulus plan.
Kenyan President William Ruto is looking to radically shake up the global climate finance architecture, proposing that multilateral lenders provide at least $500 billion/year to settle existing debts and free up domestic resources for climate and development priorities. He also wants the establishment of a global Green Bank, financed by carbon taxes and other climate levies.
Following the agreement of revised targets for the shipping sector, the IMO is discussing the introduction of a global shipping levy. A group of African nations initially came out in support of but then went quiet during negotiations. A recent study anticipates that African GDPs will be significantly impacted by a levy whilst the GDPs of EU and the US stand to benefit.
African governors of the IMF and World Bank met in Cabo Verde to discuss reforms to the global climate finance architecture. Their clearly articulated set of proposed reforms focuses on the need to jointly address global public goods and SDGs, reduce African debt insecurities, and enable a country owned and driven approach.
Having aimed low the Paris Summit for a New Global Financial Pact is difficult to criticise, but if it is to be meaningful, inputs from African countries relating to debt, and the undertakings made by and reforms proposed to global financial institutions including in relation to SDRs and the World Bank, need to be fully implemented.