Ruto demands global finance architecture for climate action

Africa’s heads of state and government have agreed on common positions on climate policy. Above all, they call for a new global finance architecture fit to address the climate crisis and spur climate-compatible growth across the continent. This is the central result of the first Africa climate summit in Nairobi, jointly hosted by Kenya and the African Union this week.
The Nairobi Declaration formulates the African position for negotiators at the UN General Assembly in New York in September and at COP28 in Dubai in December. African leaders called for “concrete, time-bound action” to reform the international financial system but noted that reforms alone are “not sufficient to provide the scale of climate financing the world needs.”
In addition, they urged world leaders to “rally behind the proposal for a global carbon taxation regime” to provide climate finance at scale. This could include a carbon tax on fossil fuel trade, shipping and aviation, as well as a global financial transaction tax. This is in line with proposals put forward by Kenyan President William Ruto, who chairs the committee of African Heads of State and Government on Climate Change and has championed a new global finance architecture for climate action.
Ruto billed the summit as a moment to shift the narrative about Africa away from victimhood to positioning the continent as a hub for climate solutions. To tap into its potential and support global decarbonization efforts, Africa needs cheap, long-term financing at a scale that is easy to access.
The international financial system has so far failed to provide this adequately. Access to capital is expensive, interest rates are high, and limited concessional funding has hamstrung African countries’ ability to invest in sustainable development and contributed to debt.
Ruto called for a paradigm shift to ensure developing countries can access financing “in a way that doesn’t punish us.”
This article first appeared in Climate.Table, a product of Table.Media - Professional Briefings. Register for a free trial here.
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  • Munene Mugambi

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    Waiting to see if World Bank and IMF will need such calls

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