Global Economic Leaders Reach Consensus on Climate Finance Framework at COP28 Presidency Meeting

Fatima Saka

A significant milestone has been achieved at a two-day meeting organized by the COP28 Presidency, where world-leading economists and finance leaders gathered to establish a new framework for international climate finance. The conference concluded with a consensus on key next steps to drive progress from COP28 through to COP30, including the establishment of a comprehensive framework for climate finance.

Eminent economists from the Independent High-Level Expert Group (IHLEG) collaborated with representatives from prominent global institutions like the World Bank, IMF, ECF, IFC, COP28, COP27 Presidencies, and UN Climate Change High-Level Champions during this gathering, held in Abu Dhabi.

The assembled experts unanimously agreed to present recommendations for a new framework for international climate finance at COP28. Additionally, they will outline a definitive roadmap for the implementation of these recommendations. The new framework will particularly emphasize addressing debt issues in vulnerable nations and the vital role of the private sector in increasing financial contributions. Recognizing the need for faster growth in private finance flows, the group acknowledged the estimated requirement of $2.4 trillion USD in annual investments by 2030 to tackle climate change in emerging markets and developing economies.

The roadmap to be developed will serve as guidance for all stakeholders, including UN agencies, the IMF, World Bank, regional MDBs, national governments, and the private sector, with a focus on achieving the goals set by the Paris Agreement. The adoption of this roadmap at COP28 will facilitate concerted action by leaders from various sectors to enhance international climate finance efforts.

All participants underscored the pivotal role of finance in enabling the transition to a net-zero, climate-resilient future. They collectively acknowledged that their primary objective is to significantly increase international climate finance within this decade to support mitigation and adaptation initiatives in emerging markets and developing economies.

Dr. Sultan Al Jaber, the President-Designate of COP-28, commenced the meetings with a resounding call to deliver actionable frameworks and recommendations to drive real-world results. He highlighted that climate finance lies at the heart of the COP28 agenda, transforming aspirations into reality.

Lord Nicholas Stern, co-chair of IHLEG, expressed satisfaction with the productive meetings and emphasized the need for all stakeholders, including the private sector and MDBs, to contribute to addressing global climate challenges.

Dr. Vera Songwe, co-chair of IHLEG, stressed the urgency of addressing climate disruptions and turning them into opportunities for growth. She highlighted the importance of accelerating implementation alongside raising funds.

Kristalina Georgieva, Managing Director of the International Monetary Fund, voiced her commitment to ensure climate policy support reaches the most vulnerable and appreciated the initiative of COP28 in convening the meeting.

The IHLEG, responsible for developing policy options and recommendations for climate investment, aims to establish a comprehensive financial framework for equitable and efficient climate finance delivery, aligning with the Paris Agreement’s goals. The COP28 UAE Presidency has identified “fixing climate finance” as one of its four priority action pillars, highlighting its dedication to enabling energy transitions and supporting climate-affected nations. Alongside IHLEG, COP28 is collaborating with other expert groups and nations to achieve substantial climate finance commitments, replenish climate funds, and address challenges related to loss and damage. The meeting in Abu Dhabi saw participation from cross-sector leaders and climate finance experts, cementing the global commitment to tackle climate challenges through innovative financial solutions.