Funding gaps are widening in developing countries, limiting their ability to achieve their development and climate ambitions, as debt costs are rising and international aid is falling, requiring adequate funding to increase their capacity to cope with high public debt rates and other crises, amid global challenges Difficult, tangled with the repercussions of the Corona pandemic and war in Europe, with the negative effects of global warming and climate change, a sign that facilitated climate financing can become a new growth driver for emerging economies, where financing tools and executive programmes are developed tailored to the social and economic conditions of each country, in order to maximize the provision of funding Fair, containing and adapting to the negative effects of climate change, alleviating stress on emerging economies, providing food and fuel.
During an introductory session of the Sustainable Debt Alliance on the sidelines of the IMF and the International Bank meetings in Washington, we look forward to officially launching the Sustainable Debts Alliance in Egypt next September, which supports green growth, contributes to addressing environmental challenges and encourages a flow of green additional investments, the minister said. For the alliance, we look forward to more for a strong push for climate and development action, aiming to create a financial space in developing countries for infrastructure investment, and achieve sustainable growth in the post-pandemic stage, calling on countries and financial institutions to join this initiative, in a bid to promote international cooperation, establish a common framework to regulate sustainable debt transactions, and highlight On the financial situation of emerging and developing economies, and easing the burden of debt, thus providing an opportunity to coordinate international efforts to push the environmental path while liberating the financial space of developing countries without causing any disturbances in the international financial market.
The Sustainable Debt Alliance contributes to creating a new path for negotiations at the “intersection of debt, climate and development,” the minister said, noting that the climate action debt trading mechanism is making progress in maximizing environmental and financial resilience by using a new Sustainable release that allows countries to obtain deductions and repay interest in exchange for assets. Environmental.
The hard financial situation of emerging economies is reducing development and climate financing, while 80% of African and low-income countries are suffering from debt crisis due to external factors, highlighting: the coronavirus pandemic, tightening monetary policy of developing economies, rising food and energy costs; leading to a decline in foreign direct investment returns and tax returns, and an increase Social protection action burdens, as 60% of African countries have had to increase spending on health, and 20% of which have raised spending on education; increasing debt costs, as developing countries bear massive financial burdens to transition to a green economy and combat climate change in an extraordinary, complex global conditions.
Egypt has made significant efforts to accelerate climate change response by launching the “Sustainable Sovereign Finance Working Framework” during the previous climate summit, which represents an important step in the field of innovative finance, social development; to achieve most of the United Nations sustainable development goals, the framework covers 7 axes which are: “Transportation” the minister said. Clean, affordable infrastructure, new and renewable energy, pollution prevention and control, climate change adaptation, energy efficiency, sustainable water and sanitation management, access to basic services, social, economic progress and empowerment, affordable infrastructure.”Translated from Arabic
