Revamp financial architecture for climate action – President

President and Chair of the Climate Vulnerable Forum CVF, Nana Addo Dankwa Akufo-Addo, has stressed the critical need for a comprehensive reassessment of international financial architecture to expedite and align it with climate action.

President Akufo-Addo delivered this compelling call-to-action to world leaders during a high-level event at the ongoing Conference of Parties (COP 28) in Dubai

Addressing an audience of global leaders at the event, themed ‘Rising with the Tide, Tracking Reforms in the International Financial Architecture for Accelerated Development – Positive Climate Action’, President Akufo-Addo underscored the urgent need for a revamped financial system that not only increases resources but also tailors them to meet the specific needs of communities most affected by climate change.

“The disproportionate level of emissions by industrialized nations has led to immense losses, approximately US$535billion or 20 percent of V20 economies’ wealth over the last two decades,” President Akuffo-Addo highlighted – pointing out the imperative for advanced nations to honour their moral obligation in mobilizing additional resources to combat climate change, as outlined in the Paris Agreement.

“The CVF, since its inception in 2009, has stood as a testament to unity and shared purpose. The V20 Finance Ministers have played a crucial role in translating our political ambition into strategic economic roadmaps,” emphasised President Akufo-Addo.

He further stressed the significance of initiatives like the Accra-Marrakesh Agenda and Bridgetown Initiative, which advocate for a more equitable and effective global financial system in the context of climate crisis.

In a commendation of incoming leadership, President Akufo-Addo expressed support for the incoming CVF-Chair, Prime Minister Mia Mottley of Barbados, and new Secretary-General of the Forum, Mohammed Nasheed, reaffirming Ghana’s readiness to collaborate with their administrations.

Prime Minister Mia Mottley, incoming CVF-Chair, echoed the call for immediate action, emphasising the urgency of addressing challenges posed by climate change and the necessity for long-term financial commitments. She emphasised unity and collaboration, quoting a Barbadian proverb – “Let’s share the burden and the bounty together” – rallying all stakeholders to contribute in the cause.

Mohammed Nasheed, newly appointed Secretary-General, Climate Vulnerable Forum, highlighted the necessity of collective action, stressing that all nations are vulnerable in the face of climate change. Nasheed thanked the president of Ghana for elevating the CVF-V20 to an intergovernmental organization.

Additionally, Prof Njuguna Ndung’u, Kenya’s Finance Minister, emphasised the significant diversion of resources caused by climate change – citing examples from Kenya and calling for market development in renewable energy and investments in water resource management as pivotal strategies to address these challenges.

The collective sentiment expressed by world leaders at COP 28 underscores a resolute call for immediate, collaborative action and structural reforms in international financial systems to effectively combat the escalating climate crisis