Statement for the V20 Expectations for a Fit-for-Climate Financial System by H.E. Nana Akufo-Addo, Hon. President of Ghana and CVF Chair
Summit for a New Global Financing Pact
Thursday, 22 June 2023
6:00 pm to 7:00 pm CEST
In Person at Room 1, Palais Brongniart
H.E. NANA ADDO DANKWA AKUFO-ADDO, CVF Chair, President of the Republic of Ghana
Excellencies, Distinguished Guests, Ladies and Gentlemen,
I am pleased to open this high-level event on what climate vulnerable countries expect of the global financial system. As Chair of the Climate Vulnerable Forum, a group of 58 of the most climate vulnerable countries representing 1.5 billion people, it is critical to ensure that the global financial system is responsive to our needs, is sensitive to our economic fundamentals and unique national circumstances. More importantly, the global financial system must become the beacon of climate justice that delivers for our people and our economies. As a result, it is our expectation that the global financial system immediately aligns with climate science and directs significant financial resources towards adaptation and mitigation action that keeps the world below the 1.5-degree threshold.
Tonight’s event is a key moment in our journey to galvanize support for global financial system reform as advanced by the V20 Group of Finance Ministers of the CVF through the recently launched Accra-to-Marrakech Agenda or the A2M. The A2M also builds on the foundational work of Prime Minister Mottleys’ Bridgetown Initiative 2.0. The Honorable Mottley has been and continues to be an inspiration to the A2M and together we are determined to realize four policy priorities: First, we need to make debt work for the climate vulnerable. Second, we must transform the international and development financial system into one that is fit for a climate-constrained future. Third, we must secure a global deal on carbon financing to complement the national budgets of climate vulnerable countries as they shift into implementation mode. Finally, we need to revolutionize risk management for the climate insecure world. The A2M calls for deep and systemic reforms in the medium to long term and is a valuable addition to the short-term reforms espoused in the Bridgetown Initiative aimed at addressing liquidity concerns of climate vulnerable countries.
Colleagues, we are in a situation where the climate crisis is fueling the debt crisis and escalating cost of capital. This is at least the case in 40 out of the 58 member states of the CVF/V20. How do we correct this course? How can we boost liquidity to create the fiscal headroom needed in our member states for climate action. More importantly, how do we introduce concessional and grant elements in overall financing to reduce the cost of capital?
We want a system that delivers all of this. We want a system attuned to deliver our transition from climate vulnerability to prosperity. We want sustainable reforms that take into account the everyday realities of climate change. Should we fail to achieve any of these outcomes we will only be setting ourselves and our economies up for failure. This, we cannot afford.
Excellencies, ladies and gentlemen, our voice is important in setting the tone for bold global financial system reforms. Let us seize this moment here in Paris to ensure our concerns are established in the new global financing pact.
I thank you.