The World Bank and International Monetary Fund (IMF) Annual Meetings (October 21-25) will bring together finance and development ministers and officials from around the world at a critical time for the global financial system. Addressing climate change and other crises will require further evolution of the global financial system. The Annual Meeting is an opportunity to bring about urgent changes in the way the World Bank and IMF operate, and to shape the size and capacity of our leading institutions to respond to urgent global challenges.
story
The severe climate impacts witnessed in 2024 demonstrate that the climate crisis is accelerating faster than current efforts to modernize the global financial system. Finance ministers must act quickly to get ahead of these challenges. This will require putting more money into the system, creating greater buy-in, strengthening resilience to the impacts of climate change and enabling the economy to invest more effectively in the future. Multilateral development banks (MDBs) and the IMF are critical to this necessary transformation, working with countries and the private sector to accelerate action and channel resources where they are needed. Identifying new sources of climate finance and addressing the sovereign debt crisis are urgent priorities ahead of COP29, which will be dominated by negotiations on new global climate finance targets Become.
The scale of financing needed to support global climate change requires an expanded role for MDBs. When combined with other initiatives, MDBs are the most cost-effective way to support developing countries in mobilizing climate finance. This is because MDBs can raise significantly more money by leveraging funds contributed by shareholders. Reform and recapitalization efforts to evolve the MDB system will enable MDB lending to triple by 2030, making it a major weapon in the fight against climate change. This will also form the basis of ambitious climate finance targets at COP29. Strong replenishment of IDA, the concessional lending arm of the World Bank, the world’s largest provider of funds for climate change adaptation, is an important first step. Many commentators are calling for a record $120 billion in replenishment, given growing needs and widening cuts to aid budgets.
In addition to increasing scale, development systems need to demonstrate that they are responsive to the priorities of fragile countries, rather than burdening them. National platforms, supported by ambitious national transition plans, are therefore key to financing low-carbon and climate-resilient development. Global development and financial systems must align around this model to ensure that finance has a route to where it needs to go.
Success also requires sustained political leadership. On the sidelines of next week’s meeting, G20 finance and climate change ministers will meet to consider how to better mobilize investment in climate action. It will be important to send a clear signal of commitment to reforming the international financial architecture to meet the objectives of future challenges, including increasing the size of MDBs and broader macroeconomic and support measures. With the G20 summit in Baku and COP29 climate talks just weeks away, it is a critical time for those in power to demonstrate both the will and the means to achieve climate security for all. There is.
quotation
Rob Moore, Associate Director at E3G, said:
“Before we set new global goals on climate finance in Baku, this is the last time those with the power to mobilize climate and development finance will come together. We need to show vulnerable countries that they have both the will and the path to implement the Paris Agreement and the Sustainable Development Goals.
Danny Scull, Senior Policy Advisor at E3G, said:
“A year ago, Ajay Banga promised a ‘better bank’ and has largely implemented new diagnostics, financial innovations and emergency lending measures. Now comes phase two: a much ‘bigger bank’. ”
Laura Sabogal Reyes, Senior Policy Advisor at E3G, said:
“This year, Country Platforms and National Transition Plans are at the heart of financing to meet global climate and development goals. The 2024 IMF and World Bank Annual Meetings and the G20 Finance Ministers’ Communiqué set out a clear and credible path to implementation for the upcoming 3.0 NDC round. There has to be a signal. We have the principles and the tools. Now it’s time to move from design to implementation.”
Kate Levick (English), E3G Associate Director and Co-Head of the Transition Planning Task Force Secretariat (Macroeconomic Issues (Including the IMF), Financial Stability and Regulation, Resilience to Climate-Related Risks, G20 Finance)
m: +44 (0) 7860 861225 | kate.levick@e3g.org
Rob Moore (English), E3G Associate Director (MDB/DFI, Financial Architecture Reform, Climate Finance Geopolitics, G20 Finance)
rob.moore@e3g.org
Danny Scull (English), E3G Senior Policy Advisor (Evolution Roadmap, World Bank Group, International Financial Architecture Reform)
m: +1 (301) 787 0942 | danny.scull@e3g.org
Franklin Steves (EN, RU, SP, FR), E3G Senior Policy Advisor, (International Financial Architecture Reform, Bridgetown Initiative, CAF Reform, Climate Finance)
m: +44 7484 815434 | Franklin.steves@e3g.org
Laura Sabogal Reyes (English, Spanish, German), E3G Senior Policy Advisor (Public Development Banks, Paris Alignment and E3G Public Banks Climate Tracker Matrix, Climate Finance, Natural Finance, Innovative Financial Mechanisms, National Platforms)
M: +49 160 96466368 | laura.sabogal@e3g.org
Erin Landy, E3G Policy Advisor (MDB, World Bank, Inter-American Development Bank)
m: +1 (518) 225-6850 | erin.landy@e3g.org
Marc Weissgerber (EN, DE) E3G Executive Director Germany and CEE (German media request; International Financial Structural Reform, World Bank Group, Private Capital Mobilization)
m: +49 175 1974404 | marc.weissgerber@e3g.org
Clarence Edwards (EN), E3G Executive Director, Washington, DC
clarence.edwards@e3g.org
Ronan Palmer, E3G Chief Economist (Keizai Shimbun, Macroeconomic Issues, Debt, IMF)
m: +353 89 491 7948 | ronan.palmer@e3g.org
Note to editor
E3G is an independent climate change think tank with a global perspective. We are on the front lines of climate change, tackling barriers and driving safe climate solutions. Our goal is to translate climate change politics, economics, and policy into action. For more information about E3G, please email press@e3g.org or call +44 (0)7783 787 863. Sign up for our journalistic WhatsApp briefing service to receive updates on key geopolitical and 2024-2025 developments leading up to COP29. Receive the latest information and analysis on climate change. COP30: E3G WhatsApp Registration for Journalists – E3G.
Source link
