Developing countries receive less than 10% of global climate financing: Al-Mashat

CAIRO – 24 April 2024: In a virtual participation at the high-level session of the ECOSOC Financing for Development (FfD) Forum, Minister of International Cooperation, Rania Al-Mashat, highlighted the concerning fact that less than 10 percent of global climate financing is directed towards developing countries. This disparity is alarming considering that these nations are the most in need and heavily impacted by climate change, particularly concerning food and water security.

 

Minister Al-Mashat emphasized the urgent need to address this imbalance and stressed the importance of fostering partnerships between multilateral development banks to rectify the situation. While some progress has been witnessed in Washington through the World Bank and other institutions in terms of investment guarantees, streamlined processes, and reduced development financing costs, their impact on the ground is yet to be fully realized and implemented.

 

To tackle this issue, Minister Al-Mashat advocated for the organization of a fourth global conference on financing for development in 2025. Such an event would serve to reignite international efforts towards implementing the Sustainable Development Goals (SDGs) and ensure that climate financing is not solely focused on mitigating climate change but also directed towards adaptation projects.

 

The Minister emphasized the need for coordinated efforts to mobilize financing by employing clear mechanisms to mitigate risks associated with private sector investments. She underlined that achieving this goal requires the involvement of not only multilateral development banks and the private sector but also the implementation of comprehensive strategies to reduce risks and attract investments.

 

Furthermore, Minister Al-Mashat highlighted that financing for development should encompass all sources and encompass investment in human development, which serves as a primary focus in developing countries and emerging economies.

 

Egypt, according to Minister Al-Mashat, is actively working towards achieving these goals by collaborating with development partners and localizing global objectives. The country is also employing the principles of economic diplomacy to enhance international cooperation and development financing while sharing expertise through initiatives such as the Decent Life Initiative with African nations and countries facing similar challenges.