During a meeting at the Summit for a New Global Financing Pact in Paris, France, the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, and the President of the World Bank Group (WBG), Ajay Banga, represented the Multilateral Development Banks (MDBs) and discussed strategies to mobilize private capital for addressing climate change.
The meeting also involved representatives from the United Nations (UN).
The participants agreed to collaborate in identifying priority actions to attract private climate investment in emerging markets and developing countries (EMDCs), with a focus on achieving tangible outcomes in the near term leading up to COP28.
They acknowledged that the current level of climate investment in EMDCs is insufficient to meet the objectives of the Paris Agreement.
Therefore, they emphasized the importance of leveraging MDBs and other development finance institutions to unlock local and international private finance.
Recognizing that private capital will play a crucial role in bridging the financing gap for achieving net-zero emissions, the COP28 President-Designate, Dr. Sultan Al Jaber, and the UN Special Envoy for Climate Action and Finance, Mark Carney, expressed their support for this initiative. Mark Carney also serves as the Co-Chair of the Glasgow Financial Alliance for Net Zero (GFANZ).
The participants highlighted the need to strengthen technical capacity to develop a pipeline of viable climate projects and implement public policies that create a favorable investment environment for the green transition.
They emphasized that achieving a just and global net-zero transition requires innovative and effective solutions, particularly for mobilizing catalytic private investment in EMDCs
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