Minister of Planning, Economic Development, and International Cooperation Witnesses the Launch of the "Baku" Initiative for Climate Finance, Investment, and Trade (BICFIT)

During H.E. 's participation in the "Finance, Investment, and Trade" Day at the COP29 Climate Conference, with the participation of heads of international financial institutions and UN organizations...
 
Minister of Planning, Economic Development, and International Cooperation Witnesses the Launch of the "Baku" Initiative for Climate Finance, Investment, and Trade (BICFIT)

 

Dr. Rania Al-Mashat: Egypt continues its efforts to stimulate climate finance and fulfill its Nationally Determined Contributions (NDCs) by joining the "Baku" Initiative.

The initiative broadens the scope of climate finance to include foreign direct investments, trade, innovation, and green free zones.

The concept of climate finance has seen qualitative development since COP27 in Sharm El Sheikh, addressing the needs of various countries.

International institutions are urged to expand the use of innovative climate finance tools and concessional financing to mobilize private sector investments.

The "Sharm El Sheikh Guidebook for Just Financing" contains numerous recommendations and principles that align with the "Baku" Initiative.

The "NWFE" program has gained global attention as a practical application of the importance of national platforms for attracting climate investments.

Egypt has implemented innovative financing principles and debt-for-climate-swap programs through the "NWFE" platform.

 

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, stated that the "Baku" Initiative for Climate Finance, Investment, and Trade (BICFIT), launched by Azerbaijan during its presidency of COP29, expands the horizons of climate finance by focusing on various mechanisms such as foreign direct investments, innovation, green free zones, and small and medium-sized enterprises. H.E. explained that Egypt has joined the initiative to enhance its climate finance efforts, integrate the agendas of climate finance, investment, and trade, and drive global efforts to achieve Nationally Determined Contributions (NDCs).

 

This was mentioned during Minister Al-Mashat’s participation in the high-level meeting on the Baku Initiative for Climate Finance, Investment, and Trade (BICFIT), at the invitation of the Ministry of Economy of Azerbaijan. The meeting was attended by Mr. Mikayil Jabbarov, Minister of Economy of the Republic of Azerbaijan; Ms. Rebecca Grynspan, Secretary-General of the UN Conference on Trade and Development (UNCTAD); Mr. Achim Steiner, Administrator of the UN Development Programme (UNDP); Ms. Ngozi Okonjo-Iweala, Director-General of the World Trade Organization (WTO); Ms. Pamela Coke-Hamilton, Executive Director of the International Trade Centre (ITC); Mr. Makhtar Diop, Managing Director of the International Finance Corporation (IFC); and Mr. Thani bin Ahmed Al-Zeyoudi, UAE Minister of State for Foreign Trade.

 

In H.E.’s speech, Dr. Al-Mashat clarified that the Baku Initiative for Climate Finance, Investment, and Trade provides an innovative platform for dialogue and multilateral and interdisciplinary partnerships to enhance international cooperation, the social and economic benefits of climate finance, investment, and trade policies, in order to drive the achievement of sustainable development goals (SDGs) and ensure equitable green transitions.

 

H.E. Dr. Al-Mashat noted that the initiative is based on a vision calling for strengthening international cooperation on the interlinkages between climate finance, investment, and trade among governments and all relevant stakeholders to achieve climate goals, including through the preparation and implementation of Nationally Determined Contributions (NDCs) in ways that support the achievement of SDGs.

 

H.E. Minister Al-Mashat highlighted the five pillars of the initiative, which include: promoting climate finance by encouraging development banks, multilateral climate funds, non-profit organizations, and development partners to enhance climate finance in line with NDCs and national development plans; attracting foreign direct investment (FDI) for climate by assisting developing countries in identifying investment opportunities that intersect with both SDG and climate action needs and market opportunities; sharing best practices in developing national regulations aimed at attracting FDI for climate; focusing on the role of small and medium-sized enterprises (SMEs) in the green transition by enhancing the capacity of countries to integrate these businesses into the design and implementation of national climate action plans; and facilitating knowledge exchange and capacity-building for climate ambition.

 

The Minister also emphasized that one of the core aspects of the Baku Initiative is fostering dialogue through the development of a framework for institutional cooperation and partnerships to support long-term ambitions as part of global efforts to enhance climate transformation.

 

H.E. Dr. Al-Mashat pointed out that the Sharm El Sheikh Guidebook for Just Financing, part of Egypt's presidency initiative at COP27, already includes many recommendations and principles that align with the Baku Initiative. The Guide aims to translate climate finance promises into actionable solutions, particularly for developing countries that are disproportionately affected by climate change. H.E. also noted that coordinating and integrating initiatives enhances their impact and meets the needs of emerging nations.

 

H.E. Dr. Al-Mashat explained that the BICFIT initiative underscores the role of national platforms as essential mechanisms for coordinating international and local resources to achieve climate goals in emerging markets and developing economies. In this regard, Egypt has launched the national platform for the "NWFE" program, which has become a model for national platforms successfully attracting private sector investments for climate mitigation and adaptation. The success of the program has garnered global attention and serves as a practical example of what international reports, initiatives, and institutions advocate, having achieved tangible results in debt-for-climate swap mechanisms.

 

H.E. Dr. Al-Mashat highlighted Egypt’s launch of the Integrated National Financing Strategy for Financing (INFF), in collaboration with the United Nations Development Programme, to enhance the mobilization and direction of public, private, international, and domestic finance. H.E. emphasized that international institutions are called upon to expand the use of innovative climate finance tools and concessional financing to mobilize private sector investments.