From Dare Akogun, Egypt
The United Nations Economic Commission for Africa has launched an Initiative “Reducing the Cost of Green and Sustainable Borrowing” in climate-vulnerable countries at today at the ongoing COP27.
The initiative which is aimed at addressing the larger issues of deteriorating fiscal health under threat by potential output losses linked to climate hazards and disaster recovery costs, as well as transition risks that may hit the economy at large.
Egyptian Foreign Minister Sameh Shoukry while speaking at the event said liquidity constraints remain some of the foremost barriers to allow African countries to invest towards climate resilience and the Sustainable Development Goals.
This initiative according to him will help build deeper, resilient, and sustainable financing to accelerate its post-Covid green recovery through various mechanisms.
“The focus will be on Green and Social and Sustainable (GSS) Bonds to fill the SDG financial gaps. There is a need for climate action to reduce poverty and promote shared prosperity in a sustainable manner.
“This initiative will strengthen the ability of African states to borrow at an affordable rate, mobilize more green funding, and attract private capital,” he said.
