Loss and Damage Fund Changes Dynamics of Climate Action
Dr. Mahmoud Mohieldin, UN Climate Change High Level Champion for Egypt and UN Special Envoy on Financing 2030 Sustainable Development Agenda, said that current climate finance must be quadrupled to implement climate action, which requires all parties to do their part in mobilizing finance.
This came during his participation in a session entitled “Mobilizing Private Finance and Promoting Innovation in Renewables in the MENA Region” at COP28, with the participation of Thani bin Ahmed Al Zeyoudi, USE Minister of State for Foreign Trade, Jay Collins, Vice Chairman of Banking at Citi, and May Nasrallah, Founder and Executive Chairman of deNovo Partners.
Mohieldin stated that financing climate action should be carried out according to clear plans and binding agreements with specific timetables, explaining that the activation of the Loss and Damage Fund at the Dubai Conference one year after its launching at COP28 in Sharm El Sheikh is a model for intensive and rapid climate action.
The climate champion clarified that the role of the private sector is not limited to contributing to climate finance, but must expand to include capacity building, innovation and contributing to the implementation of solutions.
He stressed the need to increase the capital of MDBs, adopt more effective policies to finance climate and development activities, provide support to governments in developing policies and regulatory frameworks that incentivize climate action, as well as enhance private sector participation by de-risking financing and investment.
Mohieldin explained that mobilizing finance from its domestic resources requires addressing debt crises and taking into account the implementation of development plans by developing countries, as well as the contribution of the local private sector in mobilizing finance.
He added that governments in developing countries must work to improve their business environment and develop stimulating policies for climate and development action, along with their role in investing in people and providing basic services.
Mohieldin moderated a session entitled “Minimizing & Addressing Loss & Damage with Locally Led Adaptation & Risk-Transfer Financing Solutions, in which he said that the Loss and Damage Fund changes the dynamics of climate action, and highlights the need to reconsider tracks of mitigation and adaption.
The climate champion added that the fund’s role is not only to mobilize funding to deal with loss and damage, but also to provide technical assistance, data and capacity building to cope with the impacts of climate change.
