Climate funding must not overlook poverty eradication and shared prosperity goals: Al-Mashat – Egypt Today

Climate funding must not overlook poverty eradication and shared prosperity goals: Al-Mashat – Egypt Today

CAIRO - 17 April 2024: Minister of International Cooperation and Governor to the World Bank Group, Rania Al-Mashat, commended the commitment to allocating 45 percent of annual financing to climate-related projects. Still, she emphasized that it should not come at the expense of addressing core developmental challenges such as poverty eradication and shared prosperity. Al-Mashat called for a focus on supporting project structuring and bankability and addressed the G24 Governors and Ministers Meeting during the World Bank and IMF 2024 Spring Meetings in Washington.

 

In her speech, the minister called for increased financial capacity for the International Development Association (IDA) to confront economic challenges in developing countries. She highlighted the sizable gap between commitments and financing for climate action, urging the operationalization of the Loss and Damage Fund and scaling up innovative financing tools like debt-for-climate swaps.

 

“We support the call for a strong replenishment of the IDA21 and this robust replenishment will require strong efforts from contributing countries to safeguard concessional financing for the most vulnerable countries. This should be center stage in 2024,” Al-Mashat stated in her speech.

 

She highlighted the need for a Framework of Financial Incentives (FFI) that encourages countries to address the eight global challenges endorsed by Governors in