Banking sector must play bigger role in transitioning towards green economy and achieving climate change adaptation
Dr. Mahmoud Mohieldin, UN Climate Change High-Level Champion for Egypt, said that banks should play a bigger role in transitioning towards green economies by investing in climate projects.
This came during a meeting with Net Zero Banking Alliance (NZBA) members, which discussed the role of banking sector in the transition to net zero in New York, attended by GFANZ and UNEP FI representatives.
Mohieldin stated that the banking sector’s fulfillment of its net zero commitments will reflect on economies in general and will play a crucial role in involving customers in the emissions reduction process.
Dr. Mohielin addresses members of the NZBA in New York during Climate Week.
He noted that banks are increasingly integrating climate action into their strategies, and making progress in implementing comprehensive climate commitments in finance activities. He explained that the global stocktake will emphasize the urgent need to accelerate mobilizing climate finance by increasing the flow of public and private finance for climate and nature activities.
Mohieldin confirmed the important role of banks in stimulating investment in activities of energy transition, and channeling finance towards addressing the escalating risks of climate change to developing countries and restoring natural capital and biodiversity, stressing that the quality of finance and its efficiency in protecting the most vulnerable communities is no less important than mobilizing it sufficiently.
He added that the Five Regional Roundtables resulted in a large number of climate and development projects that the banking sector can contribute significantly and effectively to their financing and implementing.
Arab region has great opportunities to harness digitalization and AI in making progress in implementing climate action, and Egypt’s National Initiative for Smart Green Projects (NISGP) provides important model of mobilizing climate action at local level.
Mohieldin also participated in Digital for Sustainable Development (D4SD) event, hosted by UNDP Regional Bureau for Arab States, where he stressed that digitalization can contribute to achieving adaptation by providing smart early warning systems for all, and can contribute to reducing emissions by being included in transition towards clean energy resources.
Mohieldin said that the Arab region has great opportunities to harness digital transformation and AI in making great progress in implementing climate action and achieving SDGs, explaining that this requires providing finance from its public and private resources, and developing relevant policies.
Dr. Mahmoud Mohieldin at the D4SD event.
In this context, the High-Level Champion highlighted the NISGP in Egypt’s governorates, which aims to support the country’s digital transformation and encourage the use of technology in environment and climate projects, saying that the initiative combines digital solutions and environmental goals in a way that paves the way for smarter and more efficient practices to face the risks of climate change.
High-Level Champions Global Ambassador, Feike Sijbesma and co-chair of the Global Center on Climate Adaptation (GCA) explains how to shape a transformation mindset.
Climate Week New York City has come to a close, with the UN Climate Change High-Level Champions calling for private finance to be unlocked for nature-based solutions and spotlighting the ‘Regional Platforms for Climate Projects’ – evidence that just, affordable and accessible climate finance is paramount to the achievement of the Sustainable Development Goals.
