1st V20 Climate Vulnerables Finance Summit with the meeting of the V20 Ministers of Finance
Convening of the V20 Ministers of Finance
PROGRAM NOTE
Thursday 8 July 2021 – 1.30pm to 3.00pm GMT
SUMMARY
- First-of-its kind intergovernmental finance summit led by economies systemically vulnerable to the global climate crisis;
- Opened by HE Sheikh Hasina, the Honorable Prime Minister of Bangladesh as Chair of the Climate Vulnerable Forum (CVF), with leaders from vulnerable nations and global thought leaders on climate finance;
- High-level roundtable dialogue of the Vulnerable Twenty Group (V20) of Ministers of Finance of the 48 CVF member states, with key partner governments from the G7, G20 and international finance and development partners;
- Summit outcome Communique to articulate the core priorities and initiatives of the V20 member economies following the G7 Summit and ahead of the G20 Climate & Energy Joint Ministerial and G20 Summits at a key interval on the road to COP26 in Glasgow.
BACKGROUND & OVERVIEW
A spiraling, dual climate–COVID-19 crisis has shaken vulnerable developing economies, undermined livelihoods and sustainable development progress, and generated unprecedented transnational financial upheaval with multiple penalties for the world’s poor and vulnerable groups. At the same time, weak delivery of international climate finance, unresolved carbon finance mechanisms under the Paris Agreement, and financing instruments that are ineffective to addressing challenges specific to systemically climate vulnerable economies hold back ambition, expose the world economy to acute risks, fuel uncertainty and undermine trust and the global recovery. Overcoming such challenges on the road to UNFCCC COP26 is an urgent priority and targeted initiatives that promote action on managing macroeconomic risks, capital hurdles to climate action, bridging the financial protection gap, among other key climate finance challenges, also represent a significant opportunity to build back better.
To contribute new momentum behind economic and finance solutions for a just, resilient, and green recovery, the V20, led by Bangladesh, is convening an inaugural “Climate Vulnerables Finance Summit”. The Summit builds on the Midnight Survival Deadline for the Climate, spearheaded by the Bangladesh presidency of the CVF and V20, contributing to more than 70 nations revising their Paris Agreement national commitments (NDCs), as well as the Climate Adaptation Summit 2021, the G7 Summit outcome for increasing climate finance and funding for climate change adaptation, in addition to other recent pledges of strengthened climate responses from major and vulnerable economies and international financial institutions alike.
Prepared and hosted by the V20 and co-hosted with the Global Center on Adaptation, the Summit will be headed by global leaders, includes ministerial roundtables, and will feature interventions by CVF Heads of State and Government, high-level representatives of key partners, and the V20 Ministers of Finance. Together with the United Nations, the IMF and development partners, the high-level dialogue aims to shape globally cooperative and South-South responses for fast-tracked resilience building efforts and bold new economic and finance actions and partnerships that are updated for the evolving realities of tandem climate and COVID pressures. The Summit likewise serves as a critical opportunity to showcase all that the most climate threatened nations have been facing and undertaking, while exploring appropriate and enhanced responses with the international community. An effective recovery and resilient and prosperous future demands global and regional economic and financial cooperation and institutions consistent with the needs, and supportive of the ambition, of the most vulnerable.
OBJECTIVES
The Summit will issue a Communique highlighting the key expectations of the vulnerable economies on global climate finance, cooperation with multi-lateral financial institutions, and COP26, as well as partnerships being advanced together with the V20, including:
- Launch of the V20 Vision 2025 to underpin the direction of the V20 to reach key socio-economic growth outcomes together amid a climate-covid emergency;
- Shaping of a V20 Climate Prosperity Recovery Agenda for the systematic and universal consideration of climate risk and to promote enabling assistance options including capacity development, crisis assistance and carbon financing;
- Presentation and partnership exploration on national “Climate Prosperity Plans” as strategic economic-climate-SDG investment and cooperation frameworks to advance V20 ambitions for resilience and prosperity at the economy-level – the Government of Bangladesh will present the Mujib Climate Prosperity Plan Decade 2030, named in honor of marking the birth centenary of the country’s Father of the Nation, Sheikh Mujibur Rahman;
- Innovative V20 financing initiatives including the Accelerated Financing Mechanism to address capital cost challenges, the Sustainable Insurance Facility and the InsuResilience Global Partnership to bridge the financial protection gap, and the new CVF & V20 Joint Multi-Donor Fund.
Confirmation of your participation in the 7th V20 Ministerial Dialogue is thereby cordially requested by 20 June 2021 (RSVP: [email protected] and [email protected]).
Together, the V20 look forward to advancing collaboration of joined forces for economic partnerships with the most vulnerable economies.
