PRESS RELEASE : Sharm El-Sheikh Guidebook for Just Financing Forges a Common Path for Climate Action in Africa [November 2022]

The press release issued by COP27 on 9 November 2022.

• “Sharm El-Sheikh Guidebook for Just Financing” reduces the risk and uncertainty associated with climate investments
• The guidebook presents a realistic and implementable blueprint aimed at maximizing the effectiveness and efficiency of the existing climate finance system to drive finance to where is is needed now

Sharm El-Sheikh, Egypt, 10 November 2022 – The “Sharm El-Sheikh Guidebook for Just Financing” was launched during a panel discussion that took place during COP27’s Finance Day.  The Guidebook aims to translate commitments into implementable projects, while capturing opportunities to leverage and catalyze needed finance and investments to support climate action.

The Ministry of International Cooperation and the Tony Blair Institute for Global Change collaborated on the “Sharm El-Sheikh Guidebook for Just Financing.” The guidebook aims to move efforts on finance beyond pledges into fostering inclusive partnerships towards a climate-resilient future.

The Panel discussion was moderated by HE Egypt Minister of International Cooperation Dr. Rania Al-Mashat and included the following speakers:

•  Dr. Akinwumi Adesina, President, African Development Bank (AfDB)
•  Sir Tony Blair, Executive Chairman, Tony Blair Institute for Global Change
•  Mr. Ambroise Fayolle, Vice-President, European Investment Bank (EIB)
•  Dr. Axel Van Trotsenburg, Managing Director of Operations, World Bank Group
•  Dr. Khalida Bouzar, Assistant Secretary-General and Director of the United Nations
•  Development Programme Regional Bureau for Arab State
•  Mr. Emmanuel Nyirinkindi, Vice- President of Cross-Cutting solutions, IFC
•  Mr. James Zhan, Director of Investment and Enterprise, UNCTAD
•  Mr. Jay Collins, Vice Chairman of Banking, Capital Markets and Advisory, Citi

The Guidebook defines “Just Financing”, as financing that accounts for historical responsibility for climate change while ensuring equitable access to quality and quantity climate financing that supports resilient development pathways leaving no one behind. It sets forth 12 core principles, that serve as a framework to guide stakeholders to adopt innovative climate finance modalities and instruments.  These will enable unlocking of needed financing from public and private capital providers to scale up and drive the transition required to address climate adaptation and mitigation goals.

The initiative reduces the risk and uncertainty associated with climate investments in developing countries by addressing the information gap for both national governments and investors. It also identifies key barriers to private investments and proposes solutions to overcome them. More importantly, the Guidebook maps climate capital providers based on their: access criteria, risk appetite, regional and sectoral focus, ticket size and financing instruments to address the limited access of developing countries to climate funds. It also proposes a set of innovative financing models that can leverage the unique capabilities and interests of different pools of capital to finance impactful climate projects.  It was highlighted that even in many of the most challenging geographies and sectors successful projects that can be replicated and upscaled.

The COP27 Presidency said: “The Sharm El-Sheikh Guidebook for Just Financing concludes with an actionable agenda for each stakeholder that lists the roles they could play to achieve just financing outcomes. It presents a realistic and implementable blueprint aimed at maximizing the effectiveness and efficiency of the existing climate finance system in the short run, while rethinking the international architecture in the medium and long-term.”

The second segment of the panel included interventions from the following experts:

• Mr. Bo Li, Deputy Managing Director, IMF
• Dr. Mark Carney, UN Special Envoy for Climate Action and Finance, Glasgow Financial Alliance for Net Zero (GFANZ) / Brookfield Asset Management
• Mr. Rémy Rioux, Chief Executive Officer, AFD
• Mr. Mark Bowman, Vice President for Policy and Partnerships, EBRD
• Ms. Elizabeth Yee, Executive Vice President of Programs, Rockefeller Foundation
• Ms. Damilola Ogunbiyi, CEO, SEforALL

The Guidebook was conceptualized in September 2021 during the first edition of Egypt – International Cooperation Forum (Egypt – ICF) where developing and emerging economies underscored the dual challenge of climate change to their right to development. It also emphasized the pivotal role of the private sector in unlocking technical and financial resources at scale. The idea was further enhanced during COP26 in Glasgow with the enthusiasm around Egypt’s proposal for creating an international framework for Just Financing.