‘A green transition that leaves no one behind’: world leaders release open letter | Emmanuel Macron, Mia Mottley, Luiz Inácio Lula da Silva, Ursula von der Leyen, Charles Michel, Olaf Scholz, Fumio Ki...https://www.theguardian.com/environment/2023/jun/21/a-green-transition-that-leaves-no-one-behind-world-leaders-release-open-letterWe, leaders of diverse economies from every corner of the world, are united in our determination to forge a new global consensus. We will use the Paris Summit for a New Global Financing Pact on June 22-23 as a decisive political moment to recover development gains lost in recent years and to accelerate progress towards the SDGs, including just transitions. We are clear on our strategy: development and climate commitments should be fulfilled and, in line with the Addis Ababa Action Agenda, we recognise that we need to leverage all sources of finance, including official development assistance, domestic resources and private investment.
Delivering on that consensus should start with existing financial commitments. Collective climate-finance goals must be met in 2023. Our total global ambition of $100bn (£78bn) of voluntary contributions for countries most in need, through a rechannelling of special drawing rights or equivalent budget contributions, should also be reached.
No country should have to wait years for debt relief. We need greater and more timely cooperation on debt, for both low- and middle-income countries. This starts with a swift conclusion of solutions for debt-distressed countries.
A top priority is to continue ambitious reform of our system of multilateral development banks, building on the existing momentum. We are asking development banks to take responsible steps to do much more with existing resources and to increase financing capacity and private capital mobilisation, based on clear targets and strategies in terms of private finance contribution and domestic resource mobilisation. These financial resources are essential, but this reform is about far more than money. It should deliver a more effective operational model, based on a country-led approach. We also need our development banks to work together as an ecosystem, closely with other public agencies and streamlined vertical funds – and, where appropriate, with philanthropists, sovereign wealth funds, private finance and civil society – to deliver the greatest impact.
Technology, skills, sustainability, and public and private investment will be at the core of our partnerships, to promote voluntary technology transfer, a free flow of scientific and technological talents, and contribute to an inclusive, open, fair and non-discriminatory economy. We will promote an agenda of sustainable and inclusive investment in developing and emerging economies, based on local economic value added and local transformation, such as fertiliser value chains. This comprehensive approach will require new metrics to update our accountability instruments.
Public finance will remain essential to achieving our goals. We should start with strengthening our instruments (the International Development Association, the International Monetary Fund’s Poverty Reduction and Growth Trust and Resilience and Sustainability Trust, the International Fund for Agricultural Development, the Green Climate Fund, and other concessional windows of our banks, as well as the Global Shield against Climate Risks). But we acknowledge that meeting our development and climate goals, including the fight against hunger, poverty, and inequality; adapting to climate change; and averting, minimising and addressing loss and damage, will require new, innovative, and sustainable sources of finance, such as debt buy-backs, engagement from sectors that prosper thanks to globalisation, and more trusted carbon- and biodiversity-credit markets.