Nine NGOs implore World leaders to accelerate Climate Finance reforms

In a joint letter, a group of non-governmental organizations (NGOs) has called on the G20 to accelerate reforms in international financial systems to address climate change issues and pandemics at the 2023 Annual Meetings of the World Bank and International Monetary Fund (IMF), according to Global Citizen organization.

Nine NGOs, including Global Citizens, ONE campaign, Pandemic Action Network, E3G, Uganda Peace Foundation, EMEA, Global Nation, and Think Equal, signed the joint letter in which they expressed their worries about the urgency of the situation and emphasized that incremental changes are insufficient.

“The world is on the brink of catastrophe. Raising poverty levels, increased risks of pandemics and diseases, and more frequent extreme weather events have exposed the fragility of our current financial system,” lamented the NGOs in the joint letter to world Ministers.

The group of NGOs has urged world leaders to take urgent action to create the needed change as only the most vulnerable people shoulder the repercussions of the breakdown of the system at the end of the day.

“Time is running short, and modest incrementalism won’t be enough,” said the letter signed by the NGOs.

The letter calls for tripling the financing of multilateral development banks by 2030, as recommended by an independent expert group commissioned by the G20.

It also urges world leaders to reallocate $100 billion in IMF Special Drawing Rights to assist vulnerable nations in addressing the issue of climate change.

And, It implores  the G20 members and other wealthy nations to phase out of fossil fuel subsidies by 2025.

The issue of climate financing is set to be at the forefront of the upcoming Annual Meetings of the World Bank and IMF next week in Marrakech.

There will be discussions about the importance of private sector involvement in the $2 trillion annual climate investments in developing countries by 2030, as sole public funding can lead to high levels of government debts rather than net zero.

IMF’s Global Financial Stability Report estimated the contribution of the private sector, emphasizing that the latter will have to cover approximately 80% of the climate investments.

The Fund’s Fiscal Monitor said that relying on public spending solely to finance vast decarbonization investments is likely to lead to an unsustainable rise in debt levels, with possibly 45% to 50% of gross domestic product for a large, high-emitting emerging market.

The city of Marrakech prepares itself for a big event that will host 10,000 to 15,000 participants in the Moroccan tourist hub. It is set to host a gathering of Finance Ministers, and Central Bank Governors representing 189 member countries, in addition to leaders, experts, and media for discussions about global economic challenges.

This important event is held again in the African continent, half a century after hosting it in Kenya in 1973. Thus, it consolidates the prominence and commitment of the Kingdom of Morocco to be the gateway to Africa.