File Photo: Mahmoud Mohieldin
Speaking at a seminar titled “Breaking Boundaries: Unleashing Greening Investment Horizons in Africa and Developing Countries” on Wednesday, he underlined the importance of aligning public budgets with plans for climate and development action, enhancing private sector participation and activating innovative financing mechanisms.
Dr. Mohieldin stressed that integrating different sources and financing tools would help bridge the financial gap faced by Africa and developing countries in their climate and development actions.
Despite the requirement of developing countries for around $1 trillion a year until 2025 and double that amount until 2030 to finance climate action, developed countries have not yet fulfilled their pledges to finance climate action in developing countries with $100 billion annually, he said.
He also highlighted the Sharm El-Sheikh Adaptation Agenda launched during COP27 in November 2022, which included five key areas of work that represent promising investment opportunities: agriculture and food, water and nature, coasts and oceans, along with human settlements and infrastructure.
He stressed the need for partnerships between governments, multilateral banks and international development finance institutions to encourage private sector participation in financing and implementing climate projects.
Dr. Mohieldin also called for the activation of innovative financing instruments, such as debt swaps for investments in nature and climate and the exploitation of the natural resources of African countries and balances, such as carbon credits.
He praised the National Initiative for Smart Green Projects adopted by the Egyptian government, which is a model for localising climate and development actions that combines technology, fair and adequate financing and change of thoughts and behaviours at the level of all actors.
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