UAE leaders spearhead climate finance reforms at Paris summit

Climate leaders from the Emirates advocate global financial reform, emphasising role of private investment in environmental action

World leaders attend the closing session of the Summit for a New Global Financing Pact in Paris. AFP

UAE figures took on leading roles at the Summit for a New Global Financing Pact in Paris this week, where they engaged in discussions with international leaders on climate finance reform.

During the summit, Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Cop28 President-designate, met climate leaders including French President Emmanuel Macron, Brazilian President Luiz Inacio Lula da Silva, Prime Minister of Barbados Mia Motley and UN Secretary General Antonio Guterres to address climate finance imbalances and discuss potential solutions.

The summit, convened by Mr Macron and Ms Motley, aims to foster global financial reform with a particular focus on mobilising more resources towards climate action and supporting vulnerable communities.

Dr Al Jaber stressed the need for broader participation across the financial community to meet the pressing challenge of climate change.

The Cop28 President-designate pointed out that clean energy investment in low-income countries constitutes less than 2 per cent of the global sector investment, significantly short of the baseline requirement of $120 billion a year.

“Changing that equation requires trillions in private investment, not just billions in multilateral loans,” he said.

He also emphasised the importance of developed nations meeting their commitments to provide finance for developing countries and called climate finance an economic opportunity, not a burden.

Dr Al Jaber led talks on private capital mobilisation at a roundtable discussion hosted by prominent financial and economic leaders including Ajay Banga, President of the World Bank, and Mark Carney, UN special envoy on climate action and finance.

He further advocated the role of private capital in climate finance and the importance of making finance more accessible and cheaper, especially for countries in the Global South.

Dr Al Jaber also stressed the importance of mechanisms that reduce the perceived risk of investing in emerging and developing economies.

A separate roundtable session focused on Voluntary Carbon Markets, with Dr Al Jaber emphasising their potential role in financing decarbonisation efforts. The session highlighted the need for governments, organisations and civil society to work collaboratively to establish regulations and standards for these markets.

In parallel to the financial discussions, the UAE's Razan Al Mubarak, UN Climate Change High-Level Champion for Cop28, took part in a major announcement made at the Elysee Palace.

A coalition committed to protecting and funding natural capital worldwide unveiled significant commitments, aiming to follow the Kunming-Montreal agreement and protect 30 per cent of lands and seas by 2030, while developing new economic models rewarding natural capital.

They intend to establish country packages for forests, nature and climate based on mutual commitments and scientific data.

The coalition also plans to fast-track negotiations using funds from partners such as the Wildlife Conservation Society and anticipates the funding of large-scale projects with pledged investments from sources including the Bezos Earth Fund.

Private sector investment in carbon and biodiversity reserves is another key focus, with an international task force launched to define a suitable framework.

This coalition seeks to work closely with indigenous and local communities in these efforts, respecting their knowledge, plans and leadership in forest protection and use.

Both Dr Al Jaber and Ms Al Mubarak had fruitful private meetings with international leaders and concluded their participation in the summit with a clear vision for progress.

“Climate change sees no division between North and South … If we act in true unity, we can apply pace and scope to deliver action and hope,” Dr Al Jaber said.