Egypt’s Minister of Environment Yasmine Fouad stated that developing countries need $160 billion annually for climate change adaptation, which is a significant increase from the $22 billion being provided now.
Fouad made these remarks during her speech Saturday 02/12/2023 at the high-level Global Stocktake (GST) event at the 28th UN Climate Change Conference (COP28) in Dubai, according to a statement by the Ministry of Environment.
The required funding to fulfil the commitments of developing countries until 2030 approaches nearly $6 trillion, Fouad said.
However, current inflows barely exceed $100 billion annually, she revealed.
Fouad highlighted that the funding needed for energy transition surpasses $1 trillion annually, with an additional $4 trillion required for carbon neutrality.
Furthermore, she stated that the climate finance reports estimate a funding gap of $2.5 trillion amid the debt crisis faced by developing nations due to external factors, raising the cost of financing and complicating access to loans.
In this regard, Fouad stated that President Abdel-Fattah El-Sisi called on nations to adopt a set of measures addressing the costs imposed by consecutive climate crises on the global economy, reaching trillions of dollars annually.
A key measure includes expediting the activation of debt management mechanisms in developing countries, including middle-income nations, through the development and expansion of debt swap mechanisms for development, Fouad noted.
Additionally, Fouad said that the president urged countries to join the Sustainable Debt Alliance initiative launched by Egypt in collaboration with the United Nations Economic Commission for Africa.
He also supported the Bridgetown Accord initiative by the prime minister of Barbados to eliminate all additional fees on developing countries from international financial institutions.
The environment minister also highlighted the president's call to quadruple adaptation funding and rapidly activate innovative financing mechanisms.