By Fatima Saka and Dauda Abbas
President Bola Ahmed Tinubu of Nigeria has joined an assembly of world leaders in Paris for the Macron Summit, a pivotal event aimed at establishing a new global climate financing plan and addressing pressing issues related to climate, development, and debt.
Hosted by French President Emmanuel Macron and Barbados Prime Minister Mia Mottley, the two-day summit features an array of activities, including an opening ceremony, six round tables, 30 branded events, and over 50 parallel events. Distinguished leaders such as Prime Minister Mottley, Chancellor of Germany Olaf Scholz, President of Mozambique Filipe Nyusi, President of Brazil Luis Inacio Lula Da Silva, and others form the influential lineup.
With a strong focus on climate, debt, and development, the conference holds immense significance for countries in the global South and is expected to set the agenda for climate discussions at the upcoming COP28 later this year.
One of the critical issues to be addressed stems from the Global South’s ongoing struggle to access climate financing since the signing of the historic Paris Agreement in 2015. Despite developed nations pledging an annual contribution of $100 billion for climate change management and mitigation in Africa, these promises have fallen short, negatively impacting underdeveloped nations, particularly those in Africa. Despite being responsible for less than 3% of global emissions, Africa bears the brunt of the severe effects of the escalating climate crisis.
Moreover, the continent faces unprecedented economic challenges resulting from the COVID-19 crisis and geopolitical headwinds, exacerbating the situation.
To navigate these challenges and simultaneously address climate change and development aspirations, African nations have been compelled to rely heavily on debt, leading to record-high debt levels. This overreliance on debt severely hampers their ability to adapt to climate change and achieve low-carbon development.
In 2022, according to the UN Economic Commission for Africa, an alarming 60% of climate financing received by the continent came in the form of debt instruments. The repayment of these loans has become increasingly challenging, as evidenced by recent defaults by Ghana and Zambia. To successfully combat climate change and achieve sustainable development, African nations urgently require a comprehensive debt management strategy.
The Macron Summit serves as a crucial platform for global leaders to seek tangible debt solutions and innovative funding mechanisms, ensuring that underdeveloped nations can effectively confront the climate crisis while pursuing sustainable development. The outcomes of this summit will play a pivotal role in shaping future strategies and actions taken at COP28 and beyond.
President Macron acknowledged that African countries have been significantly impacted by major global challenges, including the burden of debt that hampers growth and development.
“The Covid-19 pandemic brought many difficulties, and now we are faced with the war in Ukraine, which has been draining resources that should be channeled into human development,” he said.
Macron emphasized to the leaders from 50 countries, multilateral institutions, and the private sector that justice and fairness must be paramount in redesigning the new world financial architecture, with a greater focus on the most vulnerable.
The French President listed four elements for consideration by the leaders, beginning with the acknowledgment that reducing poverty requires collective efforts within a diverse and comprehensive framework.
“We must admit that no country can succeed alone in reducing poverty and protecting the planet,” he added.
Macron stated that the framework should be relevant to each country, including subregional roles with clear responsibilities and benefits. He also emphasized the need to re-engineer multilateral institutions like the International Monetary Fund and World Bank to be more people and solutions driven.
The French President recognized the importance of involving the private sector in the new pact, aiming to harmonize growth as they control most of the financial instruments that need to be mobilized for more equitable development, particularly in health, education, and food security.
Speaking on behalf of African countries, the President of Niger Republic, Mohammed Bazoum, stressed that the new pact must be “urgent” and “essential” for Africa. He emphasized the need for a “just” and “robust” framework that reflects the reality of developing countries as partners.
Bazoum highlighted how challenges such as impoverishment and desertification have contributed to unrest in most countries, affecting peace and stability in sub-regions and the continent as a whole.
“In Africa, we need support for infrastructure, health, food security, and education,” he stated.
UN Secretary-General, Antonio Guterres, addressed the gathering of leaders and emphasized that the high-level summit would require increased mobilization and political will for redesign and implementation.
Guterres noted that many countries are still struggling with the effects of Covid-19 and climate change, and the war in Ukraine has further intensified their suffering.
He mentioned that some African countries have been unable to service their debts, with indications that future generations might be affected.
“African countries,” he said, “have not been adequately represented in the global order.”
Guterres stressed that the new global financial pact must address fragmentation and frustration, enabling changes that promote debt relief, suspension of repayments, a shift in business models, and increased commitment from development banks with guarantees.
The UN Secretary-General urged leaders to look beyond reforms and accept the need for transformation.
“We are at a moment of truth and reckoning, and we can turn it into a moment of hope,” Guterres said.
Climate activist Vanessa Nakate from Uganda called for a moment of silence to remember the helpless and hopeless across the world. She emphasized that broken promises have cost the lives of many in developing nations.
Following the discussions, the Presidents and leaders of multilateral institutions and the private sector at the Summit participated in syndicate sessions to discuss the new financial architecture. President Tinubu is scheduled to participate in the summit on Friday, which will unveil a New Global Financing Pact and mechanism for implementation.