Unpacking Climate Finance Discussions at World Bank Group Spring Meetings: Egypt’s Rania Al-Mashat Urges Innovative Tools for Mobilization

During a meeting between the African Governors and Ajay Banga, President of the World Bank Group, at the IMF and World Bank spring meetings in Washington, discussions focused on various pressing issues including public debt, energy project financing, private sector involvement, climate financing, and enhancing resources for the International Development Association. Rania Al-Mashat, Minister of International Cooperation in Egypt, emphasized the challenges faced by developing countries and highlighted the importance of climate finance for Africa.

Al-Mashat stressed the need for innovative tools to help countries mobilize more climate finance. She urged the Bank to explore options through its Private Sector Investments Laboratory. She also welcomed the establishment of the Loss and Damage Fund and called for its swift operation to provide technical assistance to countries in assessing and addressing climate risks. Additionally, she encouraged the Bank to increase the share of adaptation financing to 70% by 2030 and leverage private sector financing for mitigation activities.

The Minister acknowledged the Bank’s efforts in doubling financing for renewable energy and expressed readiness to discuss policies that can attract more private investment in this sector. She emphasized that stronger collaboration is needed between African countries and international institutions like the World Bank Group to address urgent climate challenges faced by Africa.

In summary, Al-Mashat underscored that African countries have requested approximately $277 billion in climate financing from the World Bank Group. She urged stronger collaboration between African countries and international institutions like the World Bank Group to address urgent climate challenges faced by Africa through innovative tools such as private sector involvement, renewable energy financing, adaptation funding, loss and damage fund establishment and leveraging private sector financing for mitigation activities.