Rania Al-Mashat: Achieving a just transition to a green economy requires closing the financing gap

Dr. Rania Al-Mashat, Minister of International Cooperation, participated in the opening session of the annual conference of the African Society Foundation for International Law, which was held in Cairo in partnership with Zulficar and Partners’ Office, under the title “Africa and the Phenomenon of Climate Change”.

In her opening speech, Minister of International Cooperation, Dr. Rania Al-Mashat, said that, about a week before the start of the COP27 climate conference, it is necessary to emphasize the importance of effective climate action, and the need to achieve a just transition towards a green economy, especially in Africa, which is the least contributor to climate change. Globally, harmful emissions receive only 5% of the available climate finance.

She noted that the COP27 climate conference is being held at a very important time, as the world suffers from the repercussions of the Corona pandemic, as well as the Russian-Ukrainian war and its severe repercussions and burdens on countries, as well as the energy and food crises. Moving from the stage of pledges to the stage of implementation and stimulating adaptation projects to support the ability to address climate change, especially in the water and food sectors.

The Minister of International Cooperation participates in the Conference of the African Society of International Law

The Minister of International Cooperation explained that climate changes have negative repercussions on various levels, whether economic, environmental or societal, pointing out that the climate conference in Egypt takes place at a very exceptional time and represents an opportunity to advance climate action efforts in the continent of Africa and move from the stage of pledges to the stage of implementation. Which will only be achieved through equitable financing and bridging the financing gap for climate action, and innovation of unconventional financing solutions, with the joint work of the various relevant parties from governments, the private sector, non-profit organizations, and international financial institutions.

She referred to the initiative launched by the Ministry of International Cooperation, at the event it organized within the activities of the Climate Conference in Glasgow 2021, in cooperation with many partners and international financial institutions, on developing an international framework for innovative financing in order to increase climate investments and translate them into implementable projects in developing and emerging economies.

To this end, the Ministry launched an intensive and continuous process of consultations in cooperation with more than 100 multilateral and bilateral development partners, commercial and investment banks, the private sector, non-profit organizations, think tanks and research, in order to begin developing an effective and practical framework to stimulate climate finance, and to answer all Questions about the challenges of climate finance. As a result of these discussions, the “Sharm El-Sheikh Fair Finance Guide” was developed, which is a practical tool that can be used to stimulate climate action.

Rania Al-Mashat, Minister of International Cooperation
Rania Al-Mashat, Minister of International Cooperation

She noted that one of the challenges facing the provision of climate finance is the lack of private sector participation, the low attractiveness of projects to investors, and the lack of readiness of governments. Therefore, the Sharm El-Sheikh Guide to Fair Finance – to be launched during the Finance Day activities of the Climate Conference – enhances joint work between the relevant parties from Governments, development partners, international institutions, investment and commercial banks, and non-profit organizations in order to address all these challenges and enable countries to provide climate finance.

She also spoke about the importance of national platforms for countries to mobilize climate finance and provide their needs for the transition to a green economy. From this standpoint, Egypt launched the national platform for green projects, the “Noufi” program, which includes a set of priority projects in the food, water and energy sectors, under the umbrella of The National Climate Change Strategy 2050, which aims to mobilize concessional development finances, grant components, technical support and stimulate private sector investments in order to advance national efforts for green transformation, and to become a viable platform and model in Africa and emerging countries to advance their efforts regarding climate action.

She stressed the need to create visions and joint efforts among governments, the private sector and all relevant parties in order to achieve one goal, which is the green transformation, stimulating climate action and confronting the negative repercussions of climate change.

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