Private capital pivotal to more accessible funds for climate fight

Dr Sultan Al Jaber meets Brazilian President Luiz Inacio Lula da Silva to discuss collaboration on environmental issues

French President Emmanuel Macron greets those attending the Summit for a New Global Financial Pact in Paris. AFP

Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Cop28 President-designate, spoke on the importance of finance in the fight against climate change on Thursday during the Summit for a New Global Financial Pact in Paris.

He also met Brazilian President Luiz Inacio Lula da Silva to discuss the South American country's nomination to host Cop30.

A statement posted on Twitter said that the two leaders had agreed during the meeting to join forces to deliver a comprehensive response to deforestation, biodiversity loss and climate change.

A roundtable discussion that featured Dr Al Jaber, World Bank President Ajay Banga, International Monetary Fund managing director Kristalina Georgieva and Mark Carney of the Glasgow Financial Alliance for Net Zero focused on an agenda for creating cheaper, more accessible and available debt.

“Our goal today must be to stop talking and start delivering,” said Dr Al Jaber, addressing private capital mobilisation.

The opportunity in unlocking private finance for the climate battle would create a bigger investment pool.

“Private capital is the force multiplier that can really change the game when it comes to effective climate finance,” he said.

He added that it was imperative to “simplify, speed up, and standardise access to climate funds across international financial institutions and specialised funds”.

“We must drive transparency and price discovery and give all market participants the tools and mechanisms that narrow the gap between perceived risk and actual risk when it comes to investing in emerging and developing economies”

The President-designate also held talks with Norway's Minister of International Development Anne Beathe Tvinnereim to discuss accelerating action ahead of Cop28, which begins in the UAE in November, across nature, health, food systems, climate finance and energy.

French President Emmanuel Macron hosted more than 40 leaders, from Mr da Silva to about a dozen African heads of state and China's Prime Minister as well as representatives of international organisations at the summit.

The goals were to boost crisis financing for low-income countries, reform post-war financial systems and free up funds to tackle climate change.

Ms Georgieva confirmed a pledge to shift $100 billion of “special drawing rights” into a climate and poverty fund had been met.

Mr Banga said the World Bank planned to introduce a “pause” mechanism on repayments for debtor countries hit by crises.