Minister of Planning, Economic Development, and International Cooperation Participates in G20 Meetings in South Africa on Financing for Development

In preparation for the Finance in Common Summit:
 
Minister of Planning, Economic Development, and International Cooperation Participates in G20 Meetings in South Africa on Financing for Development

 

"Al-Mashat": Emerging markets need more efficient and equitable financing mechanisms to address financial constraints.

We call for the reform of the global financial system and the enhancement of investment flows to developing countries through innovative and effective financing tools

Multilateral development banks play a vital role in supporting national platforms for climate action.

Egypt's experience in launching country platforms has become a model for other developing countries.

The "NWFE" program follows a blended finance approach to engage the private sector in climate action.

 

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, participated in a high-level workshop on country platforms for exchanging experiences among countries and financing for development. The workshop was organized by the Development Bank of South Africa (DBSA), the Presidential Climate Commission of South Africa (PCC), in collaboration with the African Climate Foundation, the French Development Agency (AFD), and the World Resources Institute, as part of the G20 meetings in South Africa.

 

The meeting included representatives from governments, multilateral development banks, development finance institutions, the private sector, and non-governmental organizations. The workshop addressed the financial, institutional, and capacity-building challenges faced by national programs, aiming to create momentum around positioning national platforms as a central element of the global climate financing and development agenda.

 

At the beginning of H.E.’s speech, Dr. Rania Al-Mashat emphasized that country platforms have gained increasing attention in international forums due to their pivotal role in achieving tangible impacts through enhancing partnerships and mobilizing development finance to tackle climate change.

 

H.E. Minister Al-Mashat affirmed the principle of "country ownership" as a key element in enhancing the effectiveness of these platforms and their ability to mobilize climate investments.

 

H.E. Dr. Al-Mashat also highlighted the importance of the recent statement issued by multilateral development banks (MDBs) on country platforms to support climate action during the COP29 conference, where MDBs have a vital role in enhancing climate efforts by supporting the development of country platforms, contributing to coordinating efforts among various stakeholders and mobilizing the necessary financing to achieve nationally determined contributions (NDCs).

 

The Minister of Planning, Economic Development, and International Cooperation emphasized the need to reform the global financial system and enhance climate investment flows to emerging and developing economies through effective and applicable tools to tackle climate change.

 

H.E. Dr. Al-Mashat noted that, as agreed by the G20, country platforms facilitate coordination among key actors, including governments, the private sector, civil society, and international partners, thereby enhancing the impact of these efforts on communities.

 

H.E. Minister Al-Mashat stressed that emerging markets require more efficient and equitable financing mechanisms to address the global financial constraints, citing the "Bridgetown Initiative," which aims to reform the global financial system and its importance in increasing capital flows to achieve sustainable development goals.

 

The Minister reviewed Egypt’s experience in launching the country platform for the "NWFE" program, a nexus of water, food and energy sectors.

 

H.E. Minister Al-Mashat pointed out that Egypt places climate action at the heart of its development agenda.

 

H.E. Dr. Rania Al-Mashat continued, explaining that the "NWFE" platform follows a national, country-led approach based on practical vision and planning. H.E. Dr. Al-Mashat clarified that nine priority projects have been identified, balancing adaptation, resilience, and climate change mitigation, in line with Egypt's National Climate Change Strategy 2050. These projects were selected through an evaluation process led by the Egyptian government and categorized into three main areas addressing the interconnected challenges of water scarcity, food security, and energy needs, helping to bridge gaps through offering investable projects.

 

H.E. Dr. Al-Mashat mentioned that the program adopts a blended finance approach, enabling it to effectively address the socio-economic challenges related to climate change. She explained that it serves as a guiding framework to mobilize financial resources to support Egypt’s transition to a sustainable climate agenda. The "NWFE" platform also promotes inclusivity by encouraging collaboration with various stakeholders, including relevant ministries, development partners, climate funds, and the private sector. The platform has become a model for other developing countries, such as Macedonia and Tanzania, that have requested technical support from Egypt to replicate the experience.

 

H.E. Dr. Rania Al-Mashat outlined that the platform utilizes a variety of financing sources, including debt swaps, guarantees, concessional financing, grants, and private investments, emphasizing the principle of "just financing" as a key element.

 

H.E. Dr. Al-Mashat also noted that, through joint efforts with international partners, the platform has mobilized approximately $3.9 billion in concessional development finance for the private sector to fund renewable energy projects with a capacity of 4.2 gigawatts, as well as decommissioning thermal power plants with a capacity of 1.2 gigawatts.

 

The Minister of Planning, Economic Development, and International Cooperation further explained that, as a result of these joint efforts, Egypt updated its renewable energy targets within the NDCs in 2023, bringing forward the goal of generating 42% of electricity from renewable sources from 2035 to 2030.

 

In conclusion, H.E. Dr. Rania Al-Mashat reiterated that it is essential to work according to the priorities and national vision of each country while considering the international agenda and maximizing the benefits of partnerships for a sustainable future for future generations. She also mentioned preparations for the fourth Financing for Development Conference in Spain later this year and its importance in continuing global efforts to achieve sustainable development, enhance the reform of the international financial system, and contribute to increasing capital flows. H.E. Dr. Al-Mashat highlighted that Egypt has launched a comprehensive national strategy for financing development that integrates both domestic and external financing along with innovative financing mechanisms to create a coherent and transparent framework for financing for development.

 

Also participating in the sessions alongside the Minister of Planning, Economic Development, and International Cooperation were Rudi Dicks, Head of Projects at the South African Presidency Office; Sri Mulyani, Indonesian Finance Minister; Ivan Oliveira, Deputy Minister of Finance for Sustainable Development of Brazil; Susana Muhamad, Minister of Environment and Sustainable Development of Colombia; Cheikh Niane, Deputy Minister of Energy, Oil, and Mining of Senegal;  as well as officials from