Enhancing banking sector's role crucial in green economy transition and climate adaptation: Mohieldin

Ahram Online , Sunday 24 Sep 2023

Mahmoud Mohieldin, UN Climate Change High-Level Champion for Egypt and UN Special Envoy on Financing the 2030 Sustainable Development Agenda, has underscored the imperative for banks to take a more substantial role in driving the transition to green economies through investments in climate projects.



Mohieldin, who is also the UN special envoy on financing the 2030 Sustainable Development Agenda, made the remarks during an event hosted by the Net Zero Banking Alliance (NZBA) as part of Climate Week NYC.

The event was attended by members of NZBA, the Glasgow Financial Alliance for Net Zero (GFANZ), and representatives from the United Nations Environment Programme Finance Initiative (UNEPFI).

He stated that the banking sector's commitment to achieving Net Zero targets would have far-reaching economic effects and play a pivotal role in engaging customers in the process of reducing emissions.

Mohieldin highlighted the growing trend of banks integrating climate action into their strategies and implementing substantial climate commitments.

He also stressed that the global stocktake would underscore the urgent necessity of mobilizing climate finance by increasing public and private funding for climate and nature-related initiatives.

Additionally, Mohieldin confirmed the vital role of banks in promoting energy transition investments and directing finance toward mitigating climate harms faced by developing countries.

He emphasized that the effectiveness of finance in safeguarding vulnerable communities is equally critical as its quantity.

Furthermore, Mohieldin noted that the outcomes of the Five Regional Roundtables had generated numerous climate and development projects that the banking sector could help finance.

Digital transformation

In another engagement, Mohieldin participated in the Digital for Sustainable Development (D4SD) event hosted by the UNDP Regional Bureau for Arab States.

He emphasized that digitization could aid in achieving adaptation goals by providing intelligent early warning systems accessible to all and contribute to emission reduction by being integrated into the transition towards clean energy resources.

Mohieldin highlighted the ample opportunities for the Arab region to leverage digital transformation and artificial intelligence to make substantial progress in climate action and achieving Sustainable Development Goals (SDGs).

He underscored the importance of mobilizing both public and private resources and developing relevant policies to support these efforts.

In this context, the climate champion drew attention to Egypt's National Initiative for Smart Green Projects in various governorates. The initiative seeks to bolster the country's digital transformation and promote technology utilization in environmental and climate projects.

Mohieldin noted that this initiative blends digital solutions with environmental objectives, paving the way for smarter and more efficient practices to address climate change risks.

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