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The global climate summit recently concluded with a consensus that the international financial system is not equipped to deal with the challenges of climate change.
The summit focused on providing assistance to developing nations burdened by debt. While there were discussions and small steps taken, the conference did not produce significant outcomes. The financial system, including institutions like the World Bank and International Monetary Fund, was criticized for being outdated and favoring the rich over the poor.
Protesters rallied against fossil fuels and called for an end to fossil finance. Despite the challenges, leaders emphasized the need to find common ground and work together. Some positive developments included the acceptance of “natural disaster clauses” in debt by the World Bank and the introduction of a debt repayment pause mechanism.
The International Monetary Fund also fulfilled a pledge to allocate $100 billion for a climate and poverty fund. However, campaigners argued that more needs to be done, including increasing public funding. The summit did not address this adequately. French President Macron proposed international taxes on financial transactions, airline tickets, and shipping to finance climate change and poverty alleviation efforts.
The goal of providing $100 billion annually in climate finance to poorer nations by 2020 is expected to be fulfilled this year, although confirmation of the funds may take some time. The International Energy Agency highlighted the need for nearly $2 trillion in annual clean energy investment in developing countries within the next decade.
