MULTILATERAL development banks, the Asian Development Bank (AfDB) and the World Bank, have pledged to increase climate finance as the V20 Group called on developed countries to honor their climate aid commitments under the ‘Paris Agreement.
The V20 group, made up of countries most vulnerable to climate change, including the Philippines, demanded a “2020-2024 execution plan” for the $ 100 billion annual climate assistance missing from the Paris Agreement.
During the recent V20 Ministerial Dialogue, V20 President HE AHM Mustafa Kamal called on multilateral banks to support V20 and make funding more accessible.
“As members of the V20 countries, it is our responsibility to find a lasting solution to tackle the adverse effects of climate change,” said Kamal.
“In this regard, I call on representatives of international financial institutions, multilateral development banks and development partners to stand firmly by our initiatives, with the necessary technology and resources. The lives and livelihoods of 1.2 billion people in the V20 countries could be saved through this initiative, ”he added.
In his remarks at last week’s first “Climate Vulnerability Finance Summit” and “V20 VII Ministerial Dialogue,” AfDB President Masatsugu Asakawa said the bank will do everything to achieve its goal. climate finance.
This goal is to provide at least $ 80 billion between 2019 and 2030 for climate finance. He also said that the AfDB plans to increase its investments in adaptation and resilience to $ 9 billion between 2019 and 2024.
Asakawa said the AfDB also aims to fully align its sovereign operations by July 2023 and its non-sovereign operations by July 2025 with the Paris Agreement. By July 2023, the AfDB’s non-sovereign operations will be 85% aligned with the deal, according to the bank.
“The AfDB is working in partnership with countries in the region, not only to enable the implementation of their ‘Nationally Determined Contributions’, but also to ensure that our own operations are aligned with the Paris Agreement,” he said. Asakawa said.
Meanwhile, World Bank President David Malpass has said that over the next five years the bank will allocate 35% of World Bank Group funding to climate investments.
Malpass added that at least 50 percent of the Washington-based lender’s climate finance will be spent on adaptation investments.
In addition, besides direct financing, Malpass said the bank is also deploying concessional financing and political risk insurance to unlock private capital for climate investments.
“We’re also thinking about how to make an impact beyond direct funding. Public budgets alone are not enough for the scale of climate investments we need, so we are also mobilizing private investments, ”said Malpass.
The V20 communiqué urged individual developed countries that failed to help secure the collective $ 100 billion a year support for climate finance to take urgent action to meet their share of the agreed funding well ahead of COP26, in the interest in international climate action and cooperation. .
The group said developed countries were asked to indicate how and when they will catch up with a concrete “delivery plan” outlining how the full agreed funding will be met during and over the years 2020-2024.
The V20 also urged developed countries to align their contributions under UN agreements by allocating public international climate finance to secure at least 50 percent of resources for urgent adaptation needs as the climate crisis continues. to disproportionately crack down on the economies most at risk in the midst of the shocks of the Covid pandemic.
The statement said the annual levels of loss and damage from climate consequences in the V20 were already costlier than any amount of climate finance received or pledged by the wealthiest and most responsible nations.
Formed in 2015 with originally 20 members, the V20 Group of Finance Ministers of the Member States of the Climate Vulnerable Forum is a cooperation initiative dedicated to economies systematically vulnerable to climate change.
The V20 has 48 economies, including Afghanistan, Bangladesh, Barbados, Bhutan, Burkina Faso, Cambodia, Colombia, Comoros, Costa Rica, Democratic Republic of Congo, Dominican Republic, Ethiopia , Fiji, Gambia, Ghana, Grenada and Guatemala.
The list also includes Haiti, Honduras, Kenya, Kiribati, Lebanon, Madagascar, Malawi, Maldives, Marshall Islands, Mongolia, Morocco, Nepal, Niger, Palau, Palestine, Papua New Guinea, Philippines, Rwanda, Saint Lucia, Samoa , Senegal, South Sudan, Sri Lanka, Sudan, Tanzania, Timor-Leste, Tunisia, Tuvalu, Vanuatu, Viet Nam and Yemen.