- Leaders and global organizations meet in Paris
- Seeking consensus on debt and climate finance
- Development banks urged to risk capital to boost lending
PARIS (Reuters) – Rich countries have finalized an overdue $100 billion climate finance pledge to developing countries and created a fund for biodiversity and forest protection, the French president said on Friday bottom.
President Emmanuel Macron was speaking at the final panel of the summit in Paris. The summit brought together some 40 leaders, including 20 from Africa, a Chinese prime minister and a Brazilian president, to give impetus to a new global monetary policy.
The purpose of the summit is to reach top-level agreement on how to advance the many initiatives countries are struggling with, to strengthen crisis financing and reduce the debt burden of low-income states, and to strengthen the post-war financial system. reform and fund climate action. G20, COP, IMF, World Bank, United Nations, etc.
While the $100 billion pledge falls far short of the actual needs of poor countries, it has become a symbol of the failure of rich countries to deliver the climate finance they promised. This has fueled distrust in broader climate negotiations among countries seeking to step up efforts to reduce CO2.
The World Bank on Thursday announced it would ease lending to countries hit by natural disasters, and the International Monetary Fund announced it had reached its goal of providing $100 billion in Special Drawing Rights (SDRs) to vulnerable countries. .
Of the $100 billion SDR to be rechanneled, the US government has yet to pass legislation to release a share worth more than one-fifth of the total. U.S. Treasury Secretary Janet Yellen said gaining congressional approval is a priority for the Biden administration.
“Leaders are fed up with the status quo and want change,” World Trade Organization Secretary Ngozi Okonjoyweala said at the summit.
“Leaders agree that the multiple challenges we face – poverty, climate change and food security – are all linked. Developing economies need additional and accessible finance. and we also want a just (climate) transition,” she said.
Zambia has signed a deal to restructure more than $6 billion of debt owed to other governments, the president announced Thursday in a long-awaited remedy to ease pressure on the southern African country’s strained finances. .
The coronavirus pandemic has plunged many poor countries into debt crises as they are expected to continue to service their debt despite the heavy financial hit.
Africa’s debt problem ties in with the dual challenges faced by some of the world’s poorest countries in addressing the impacts of climate change while adapting to the green transition.
Some Western officials have accused China, the main bilateral creditor to many African countries, of holding back debt restructuring, an accusation Beijing denies.
The summit also called for greater involvement of the private sector. Senegal on Thursday signed an agreement with a rich country that will be the first to receive €2.5 billion ($2.74 billion) in loans to accelerate the development of renewable energy and the transition to a low-carbon economy.
A group of forestry heads of state and international organizations said in a statement that they had launched a biodiversity fund with the aim of reaching partnerships by COP28 in Dubai in December.
Reported by Lee Thomas.Editing: John Irish and Toby Chopra
Our standards: Thomson Reuters Trust Principles.