Finance Minister Ofori-Atta calls for urgent global support in bridging climate financing gaps

In a compelling address at the ongoing Conference of Parties (COP 28) in Dubai, Finance Minister Ken Ofori-Atta, also Chair of the V20 group of Finance Ministers, urged Multilateral Development Banks (MDBs) and the broader global financial community to expedite critical support for Climate Vulnerable countries.

Highlighting the pressing need for swift action amidst a mounting global crisis, he emphasized the imperative of closing the financial divide between vulnerable nations and their more developed counterparts.

Speaking on behalf of the Finance Minister, Dr. Osei Oteng Asante underscored that 40 out of the 68 V20 member states currently grapple with debt distress. The Climate Prosperity actions, integral to these nations’ development plans, face significant constraints due to insufficient financing, elevated capital costs, and fiscal limitations post the Covid crisis. The Minister articulated that the prevailing scenario has inadvertently led vulnerable countries to heighten vulnerabilities with each investment, rather than enhancing resilience.

Mr Ofori-Atta asserted that it is high time for MDBs to recalibrate their resource allocation metrics, incorporating climate vulnerability considerations. He called for ensuring access to low-cost and concessional resources for climate-vulnerable economies. Advocating for the scaling up of credit enhancement tools and guarantees, he urged MDBs to allocate resources directly to project preparation facilities aligned with member countries’ climate prosperity plans.

“By the World Bank and IMF Spring Meetings in 2024, MDB management should formulate plans for a general capital increase, articulating how the increase in capital will support development-positive climate action’’ he remarked.

The Minister pressed for a strategic approach from MDBs, proposing plans for a general capital increase by the World Bank and IMF Spring Meetings in 2024. This increase, he insisted, should explicitly support development-positive climate action.

In 2022, MDBs allocated $60.9 billion in climate finance for low and middle-income economies, with 63% dedicated to climate change mitigation and 37% to adaptation. While acknowledging commendable support to low-income countries, Minister Ofori-Atta stressed the criticality of expediting financial support, recognizing time as a crucial factor in the battle against climate change.

The Climate Prosperity Plans, integral to national investment strategies, aim to maximize socio-economic outcomes for nations grappling with the climate emergency. Minister Ofori-Atta emphasized the significance of these plans in fostering deliberate climate action, aligning with the Accra-to-Marrakech agenda adopted in October 2023.

The event witnessed key voices in the climate finance landscape, including Saroj Kumar of the World Bank Group, Pablo Viera of the NDC Partnership Support Unit, Jorge Moreira da Silva of UNOPS, Lilian Macharia of the Green Climate Fund, and Emilie Potvin of UNOPS. The discourse marked a pivotal moment in shaping the future trajectory of climate financing on a global scale.**

Source:norvanreports