Thursday, November 14, 2024 at 10:04
Baku – Success in the fight against climate change depends on the ability to provide the necessary financial instruments and risk management strategies, Minister of Energy and Sustainable Development Leila Benali stressed on Wednesday evening in Baku. .
“Our collective success in the fight against climate change depends on the ability to provide the financial instruments and risk management strategies necessary to inspire confidence in renewable energy projects,” said Ms. Benali who spoke at the a session entitled: “Increasing investment in clean energy systems in EMDEs”, organized on the sidelines of COP29.
During this session organized by the International Renewable Energy Agency, the Breakthrough Agenda and the Energy Transition Council, the minister, for whom climate change is a “transnational” issue, regretted that subsidies and incentives were “ very limited” at the borders.
To fight global warming by stimulating public-private investments while economically reducing energy and transport costs for all, we must be “able to offer our fellow citizens quality services,” he said. -she emphasized.
Also, in order to contain the inflationary effect of the transition, she emphasized the need to facilitate partnerships between emerging markets and developed economies and to put in place cross-border incentives to demonstrate to taxpayers that the funds are deployed in sustainable projects contributing to the reduction of greenhouse gas (GHG) emissions.
Ms. Benali underlined, in this context, the need for adaptation and scaling of business models and the establishment of a favorable regulatory environment.
“We must review multilateral financial institutions so that they adopt a bolder and longer-term vision of the perception of risks linked to emerging and developed economies (EMDE),” she insisted in this context.
Multilateral banks, as well as international financial organizations, can serve as catalysts by providing guarantees and other risk-sharing mechanisms that reduce the perceived risk associated with investments in emerging markets, she said.
The Minister called on the finance and insurance communities to equip policymakers with the means to effectively assume and manage climate risk in these businesses.
Regarding Morocco, she reported on efforts to boost climate finance, including scaling up projects and reducing costs for new technologies and fuels (ammonia, hydrogen, battery storage). , etc.), as well as the implementation of projects that are “better structured, bankable and economically viable, with a good return on invested capital”.
Benali held bilateral meetings on Wednesday with UAE Minister of Climate Change and Environment Amna bint Abdullah Al Dahhak, Qatari Minister of Environment and Climate Change Abdullah bin Abdulaziz bin Turki Al Subaie and Director General energy at the European Commission, Ditte Juul Jørgensen.
The meetings focused on strengthening bilateral cooperation and partnerships in the areas of energy transition and sustainable development.
The day was also marked by the active participation of the Moroccan delegation in the negotiations and parallel meetings organized on the sidelines of the conference.
COP 29 (November 11-22) focuses primarily on climate financing, given the need to enable all countries to reduce greenhouse gas emissions and protect lives and resources. livelihoods against the worsening effects of climate change, particularly for vulnerable communities.
