Paris (dpa) – At an international summit in Paris, states and development banks pledged better financial assistance to fight climate change and poverty, thereby also sending a signal to countries in the Global South. A consensus has been found that the global financial system must be made more efficient and fairer, French President Emmanuel Macron said at the end of the two-day meeting.
Chancellor Olaf Scholz (SPD) emphasized that the meeting was not a decision-making body. But: “I think it’s important for us to talk here.”
Representatives from around 100 countries, international organizations and development banks came to the meeting on Thursday and Friday to discuss the global financial architecture and solidarity-based financial system for climate protection and the fight against poverty.
“It is very important that the understanding has emerged here that we must make practical progress on many points to enable us to achieve two goals that are important to us,” said Scholz, with a view to fighting poverty and hunger and stopping climate change. It is important that countries with great opportunities like Germany, EU countries or the US actually implement what they announce. Another major topic is the further developments of the World Bank and international development banks.
$100 billion through Special Drawing Rights
Better financing must be created, for example, by granting special drawing rights. The head of the International Monetary Fund (IMF), Kristalina Georgieva, said the goal of raising $100 billion through special drawing rights for troubled countries has now been achieved. Special Drawing Rights are reserve assets introduced by the Monetary Fund which provide additional financial concessions to all member countries. Large IMF members can cede their withdrawal rights to poorer countries. Georgieva emphasized that these contributions make a difference in accelerating the climate transition.
Macron promised further financial assistance: “Our experts tell us that we are now in the process of reaching $100 billion in climate finance.” However, the promise was made too slowly.
Possible debt restructuring
There is also progress at the point of debt sticking out. On the sidelines of the summit, Zambia’s committee of creditors agreed to restructure the country’s debt in south Africa. Debt can be stretched or suspended. Macron emphasized that one wants to ensure that other countries in debt traps can benefit from a multilateral response. The summit also discussed a climate clause that can suspend debt payments in the event of a severe climate event.
divided reaction. Oxfam spoke of “peak for almost nothing”. The Europe director of the Bill & Melinda Gates Foundation, Anja Langenbucher, told dpa that the meeting sent an important signal. «Global South countries have become an integral part of the negotiating table. What’s more, you played a leading role.” The right push came from the top. Now it is important to make binding decisions at the G20 summit, the fall meetings of the IMF and World Bank and the UN climate conference.
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