Washington: Simon Stiell, the Executive Secretary of UN Climate Change, emphasized the crucial role of Multilateral Development Banks (MDBs) and major global financial entities in speeding up the transition to a sustainable green economy during a virtual event hosted by the Brookings Institution. This statement was made as a precursor to the upcoming COP29 conference, according to Trend News Agency.

According to Trend News Agency, Stiell highlighted the importance of the forthcoming World Bank Annual Meetings as a critical juncture for propelling climate finance forward. He acknowledged the recent initiatives by the World Bank and the International Monetary Fund (IMF), including more concessional lending for climate projects and the integration of climate considerations into their broader financial assessments. However, Stiell cautioned that these incremental changes are insufficient. He argued for a substantial increase in funding to achieve the necessary scale of green investments that the global economy r
equires.

Stiell underscored the urgent need for enhanced climate finance, pointing out the dire financial straits of many economies burdened by heavy debt, which hampers their ability to undertake significant climate initiatives. He called on the financial leaders gathered for the meetings to prioritize giving developing nations-those most at risk from climate change-the financial means and flexibility to build climate resilience.

Further, Stiell advocated for immediate actions such as debt relief, the incorporation of climate-related debt clauses, and the replenishment of the World Bank’s International Development Association (IDA) to facilitate these goals. He also urged the G20 nations, as primary stakeholders in these financial institutions, to ensure full funding for MDBs and to advocate for comprehensive reforms in the global financial system.

Highlighting the significance of Brazil’s current leadership of the G20, which has brought climate and finance ministers together for the first time, Stiell st
ressed the necessity of this collaboration leading to tangible, impactful outcomes. He warned that failing to advance climate finance outside of formal negotiations like those at COP29 could undermine key elements of international agreements, such as the Paris Accord, with potentially devastating effects.