9 Apr 2023

Against the backdrop of a global climate emergency, and launching this roadmap with the Accra V20 Senior Officials’ Meeting in the spring of 2023, the V20 will work throughout the year, culminating at the Marrakech IMF and World Bank Annual Meetings, to cement an international coalition behind a fit-for-climate global financial system: #1 MAKE DEBT WORK FOR THE CLIMATE- it is urgent that we make d. [...] • given the climate insecure future for economies, debt treatment should support the enhancement of climate resilience and the transition to climate-smart development, inclusive debt-sustainability analysis considering the investment needs of national climate strategies and plans such as Climate Prosperity Plans. [...] #2 TRANSFORM THE INTERNATIONAL AND DEVELOPMENT FINANCIAL SYSTEM - there is sufficient financial resources and money supply (liquidity through the decade and savings) in the world economy to transform economies but a decisive shift of financial flows is required to unlock the potential of the system. [...] • Optimize the use of capital of MDBs/DFIs, adding momentum behind this shift by enabling higher lending ratios to capital for new investments that are green and resilient, and lowering lending ratios to capital for brown and risky investments, justified by the now evident reality of the different overall risk profiles that pertain to each class of investment. [...] #4 REVOLUTIONIZE RISK MANAGEMENT FOR OUR CLIMATE INSECURE WORLD ECONOMY- we must double down on efforts to accept and address the new climate insecure reality of the world economy and put in place with anticipatory finance (pre-arranged and trigger-based funds) for loss and damage and mainstream surveillance and monitoring of climate risks of all kinds (physical, transition, spillover) in IFI fina.


Muniyat Fabbiha

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