The French government has called for a groundbreaking Summit for a New Global Financing Pact, set to take place in Paris on June 22 and 23. French President Emmanuel Macron, announced the organization of the summit at the end of COP27 , in November 2022. The general aim of the summit has been said to be to “take stock on all the means and ways of increasing financial solidarity with the South.”
Partners from all over the world,
Save the date: June 22-23, Paris.
The world needs a green economy that leaves no one behind. Together we can create a new financial pact.
— Emmanuel Macron (@EmmanuelMacron) June 3, 2023
This Summit follows in the footsteps of the Prime Minister of Barbados, Mia Mottley, who, at COP26 in Glasgow in 2021, emphasized the importance of increasing international funding for countries most vulnerable to climate change, to enable them to have a more effective financial basis to deal with crises.
Through her Bridgerton Initiative the Barbados’ Prime Minister sets out a “ proposal to reform the world of development finance, particularly how rich countries help poor countries cope with and adapt to climate change.”
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However, the set goals propose to go beyond the financing of climate change-related issues. Given the challenging geopolitical times, the summit’s goals are also to provide the poorest countries with financial aid that can help them cope with the instability created by the Covid-19 pandemic crisis, the Russia-Ukraine conflict, and also with possible future crises.
The Summit for a New Global Financing Pact precisely aims at “facilitating the access of the most fragile and vulnerable countries to the financing they need to address the consequences of climate change, and to overcome the socio-economic challenges they face.”
The New Global Financing Pact will focus on increasing financial commitments and resources from both the public and private sectors. Commitments may include financial aid which will focus on well-targeted development aid to finance public policies. Investment in sustainable projects, through innovative financing mechanisms for development, and again debt relief for developing countries with the prioritization of pandemic debt suspension for example.
The overall aim remains that of providing “an impetus to mobilize public and private resources” to support sustainable development, climate action, and social progress and to “reaffirm existing financial commitments”.
It is therefore crucial for global leaders, especially those from developed countries, to actively participate in the summit. By holding significant financial resources and influence, their commitment is essential in achieving the objectives.
Nevertheless, concerns that the leaders of wealthy nations have not made adequate commitments to meet the goals set to meet climate goals are already widespread. And, even if this Summit seems to be holding a real game changer position in the finance landscape, the list of presented members up until now is still missing many of the most developed countries’ leaders.
As for now, the only leaders of developed countries who have confirmed their participation are in fact the French President Emmanuel Macron,the German Chancellor Olaf Scholtz, the UN Chief Antonio Guterres and the President of the European Commission Von Der Leyen alongside many developing countries’ presidents.
Stronger commitments are necessary to bridge the financing gaps and ensure the successful implementation of global initiatives. It cannot be the case once again that the developing world’s leaders find themselves in front of unmet promises and void commitments by rich countries.
The Summit for a New Global Financing Pact in Paris represents a crucial opportunity for global leaders, particularly those from developed countries, to reaffirm their commitment to addressing pressing global challenges.
By real engagement and commitment by developed nations, the summit could really help in fostering international cooperation and collective action to overcome global challenges.
Editor’s Note: The opinions expressed here by the authors are their own, not those of Impakter.com — In the Featured Photo: G7 Hiroshima Summit, 2023. Featured Photo Credit: Wikimedia Commons.