Dr Mahmoud Mohieldin, UN Climate Change High Level Champion for Egypt and UN Special Envoy on Financing 2030 Sustainable Development Agenda, said that it is necessary to desseminate criteria adopted by the International Development Association (IDA) to finance development and climate action in low- and middle-income countries.
Mohieldin’s remarks came during his participation in a session about financing climate action in light of the 2015 Paris Agreement’s implamentation, held on the Financing Day at COP27.
Mohieldin said that the IDA provides soft grants and loans that allow long-term repayment periods and low interest rates. He stressed the importance of expanding the range of countries who benefit from the institution’s finance to include low- and middle-income countries.
Mohieddin noted that the system of financing development and climate action at the international level needs to get fixed as it is unfair, inefficient and insufficient, and at the same time, the financing policies of states must be reviewed to improve the role of public budgets in financing development and climate action and to encourage the private sector and NGOs to participate.
He highlighted the importance of activating innovative finance instruments and debt swaps for co-investing in the environment and climate projects, and establishing carbon markets, praising in this context the launching of Africa Carbon Markets Initiative (ACMI) during the conference, which would enhance the ability of African countries to finance climate action.
He stressed the need to adopt a holistic approach that puts financing sustainable development and financing climate action in one framework.