COP27… Initiatives to allow African countries to invest in building climate resilience
Egypt’s COP27 Presidency launched “Reducing the
Cost of Green and Sustainable Borrowing” initiative in climate-vulnerable
countries at COP27.
The initiative is aimed at addressing the larger issues
of deteriorating fiscal health under threat by potential output losses linked
to climate hazards and disaster recovery costs, as well as transition risks
that may hit the economy at large.
During the launch of the initiative the Egyptian COP27
Presidency said: “Liquidity constraints
remain some of the foremost barriers to allow African countries to invest
towards climate resilience and the Sustainable Development Goals.
This initiative will help build deeper, resilient, and
sustainable financing to accelerate its post-Covid green recovery through
various mechanisms.
The focus will be on Green and Social and Sustainable
(GSS) Bonds to fill the SDG financial gaps. There is a need for climate action
to reduce poverty and promote shared prosperity in a sustainable manner.
This initiative will strengthen the ability of African states
to borrow at an affordable rate, mobilize more green funding, and attract
private capital.”
