● The Minister of International Cooperation stresses the necessity of responding quickly to efforts to confront climate change and increasing investments in adaptation projects to meet the needs of developing countries.
The Ministry of International Cooperation and the International Fund for Agricultural Development (IFAD) organized a joint event during COP28, to follow up on the Resilience Monetization and Credit Initiative, which was launched in COP27, with the aim of adopting the resilience credit as an innovative financing tool, with investments directed to adaptation sectors, in light of efforts to increase the efficiency and effectiveness of development cooperation and the climate financing agenda.
The initiative aims to mobilize efforts from the government and private sectors to enhance resilience among groups most affected by climate change, especially small farmers.
The initial concept of the initiative focuses on applying resilience credit in the agricultural sector, by creating incentives for various relevant parties, including private sector investors and international organizations, to enhance resilience in developing countries in order to achieve three main goals: increasing private sector investments in projects, adaptation and resilience; Building the capacity of small farmers and smallholders to adopt sustainable agricultural practices that ensure improved resilience to climate shocks; And enhancing food security in the most needy communities.
The initial concept of the initiative focuses on applying resilience credit in the agricultural sector, by creating incentives for various relevant parties, including private sector investors and international organizations, to enhance resilience in developing countries to achieve three main goals: 1. Increasing private sector investments in adaptation and resilience projects, 2. Building the capacity of small farmers and smallholders to adopt sustainable agricultural practices that ensure improved resilience to climate shocks and 3. Enhancing food security in the most needy communities.
The session was attended by the Minister of International Cooperation, H.E. Dr. Rania A. Al-Mashat, the Assistant Vice President for Strategy and Knowledge at the International Fund for Agricultural Development, Jo Puri, the Vice President of Citibank Group, Jay Collins, and the Professor at the Sanford School of Public Policy at Duke University, Mark Gulland.
In her speech, Al-Mashat said that the resilience credit assessment initiative comes within the framework of efforts to push the climate action agenda forward. H.E. also stressed the importance of responding quickly to efforts aimed at confronting climate changes in light of the challenges facing the international community as a result of the pandemic, the negative effects of climate change, and the repercussions of all of this on the rise in food and energy prices. H.E. added that there is a need to take effective measures to enhance the ability to optimally use resources and use new technologies, taking into account development paths in developing countries in line with the principles of justice and equality.
Al-Mashat stressed the need to achieve justice in the distribution of climate financing, especially since adaptation projects receive only 4.9% of the total climate financing, compared to a much larger percentage for mitigation projects during the years 2021-2022. That being said, there is a noticeable increase in adaptation financing amounting to $63 billion, but it is insufficient in light of the estimated annual needs for adaptation projects worth $212 billion in developing countries by 2030.
Al-Mashat pointed out that confronting the risks of climate change requires increasing the efficiency and effectiveness of international development cooperation, through the use of innovative financing mechanisms capable of increasing investments in disaster and shock risk management, in a way that supports the ability to adapt to climate change.
Al-Mashat also mentioned the Sharm El-Sheikh Guidebook for Just Financing, which was launched during COP27 in Sharm El-Sheikh, included the concept of flexibility credit, in addition to many of the tools and solutions presented by the guide to maximize the efficiency and effectiveness of climate finance, in addition to presenting 12 principles of just financing.
H.E. stated that the Ministry of International Cooperation, in partnership with the International Fund for Agricultural Development (IFAD) and Duke University, has worked over the past period to develop the concept and methodology of resilience credit, to stimulate efforts to adapt to climate change, within the framework of directing joint collective efforts to promote sustainable investment, improve the livelihoods of communities, and build resilience.
It is worth noting that Al-Mashat chaired the 1st meeting of the High Level Committee for the Resilience Monetization and Credit Initiative, which was organized by the Ministry of International Cooperation, in partnership with the IFAD and Duke University, as part of the activities of the 78th session of the United Nations General Assembly meetings, which included representatives from various stakeholders from development partners, the private sector, commercial banks, non-profit organizations, academia and think tanks, including the Rockefeller Foundation, the World Economic Forum (WEF), representatives of the Climate Policy Initiative, Citi Investment Group, Mitsubishi Financial Group, the Environmental Defense Fund, Shell Foundation, the Dutch Ministry of Foreign Affairs, and others.