At the beginning of a two-day summit aimed at seeking better responses to combat poverty and climate change issues by reshaping the global financial system, French President Emmanuel Macron called for tangible solutions and massive investment for developing countries.
Speaking in Paris on Thursday, June 22, 2023, Macron averred that no country should have to choose between “reducing poverty or protecting the planet.”
The summit, hosted by France, is bringing together more than 50 heads of state, world finance officials and activists.
Attendees include China’s Prime Minister Li Qiang, Brazil’s President Luiz Inácio Lula da Silva, European Commission President Ursula von der Leyen, United Nations Secretary General Antonio Guterres, World Bank head Ajay Banga and IMF President Kristalina Georgieva.
They will deliberate on ways to transform the global financial system and address the debt, climate change, and poverty crises.
Macron called for a “financing jolt,” insisting on the need for more investment from both the public and private sectors, and the crucial role played by international institutions.
“Faced with these challenges at the same time; poverty, climate and biodiversity, we must invest way more, and we are not up to the task.”
Emmanuel Macron
Also, Macron lauded the International Monetary Fund’s initiative to allocate more funds to poor countries through Special Drawing Rights, which are an IMF international reserve asset that can be exchanged for hard currency.
Developing nations point to an outdated system where the United States, Europe, China and other big economies that have caused most climate damage are leaving the poorest countries to deal with the consequences.
The Paris summit comes in the wake of a plan championed by Barbados Prime Minister Mia Mottley to ease access to financing for climate-vulnerable countries.
Mottley and other proponents have argued that developing countries are coerced to pay such high interest rates that they struggle to finance adaptation projects, like sea walls, or green energy initiatives, like large solar farms, or simply make payments on outstanding loans when climate-infused disasters strike.
However, activists worry that the discussions will not meet expectations.
$100 Billion Pledge To Be Met For The First Time This Year
Experts are anticipated to announce on Thursday that the pledge to provide poor nations with $100 billion in aid each year to tackle global change is estimated to be met for the first time this year. The pledge which was first made in 2009 and reaffirmed at the 2015 Paris climate summit, had never been fulfilled.
Climate activists and developing nations have also urged rich countries to deliver on their existing commitments.
Harjeet Singh, Head of global political strategy at Climate Action Network International, opined, “The current financial system does not just need a bandage, it needs an intensive surgical intervention.”
“There are some good ideas on the table but I must mention that they don’t really go far enough,” he noted.
Referring to the issue of polluters paying for their climate impacts, Singh stated, “We demand cancellation of debt. We demand public finance for climate action, particularly adaptation and addressing the loss and damage.”
Meanwhile, French organizers stated that the Paris summit has no mandate to make formal decisions but it aims to give a strong political impetus to key issues to be discussed in upcoming climate conferences and other international meetings.
Macron, however, stressed that the summit should offer “very concrete solutions,” vowing to draw a list of proposals that should be accompanied by a progress-tracking tool.
