Addis Ababa, 12 December 2024 (ECA) - On November 14, 2024, at COP29 in Baku, Azerbaijan, the Sustainable Debt Coalition (SDC) brought together finance ministers, climate finance leaders, and civil society representatives to discuss innovative solutions for leveraging sustainable finance amidst fiscal constraints. The event focused on advancing climate and development goals while addressing the challenges posed by limited fiscal space.
The discussions highlighted the pressing need for affordable and innovative financing instruments such as sustainability-linked bonds, debt-for-adaptation swaps, and concessional funding.
Participants explored actionable pathways to align fiscal management with climate resilience and sustainable development. UN Under-Secretary-General and Executive Secretary of the Economic Commission for Africa (ECA), Claver Gatete, emphasized the multifaceted challenges developing nations face, including rising debt burdens, high servicing costs, and the adverse effects of climate change. He underscored the critical role of the SDC in unlocking access to green financing tailored to these unique challenges.
Egypt’s Minister of Finance, Ahmed Kouchouk, shared his country’s achievements in green finance, including partnerships that secured affordable and blended financing options. He called for expanded collaboration to make sustainable finance more accessible for developing countries.
Uruguay’s sovereign sustainability-linked loans and Rwanda’s “Ireme Invest” facility were presented as examples of successful financing mechanisms addressing climate and biodiversity challenges.
Seychelles demonstrated how debt swaps can support conservation while reducing borrowing costs. Finland highlighted its commitment to fostering collaborative financing models that promote global climate resilience.
The Africa Climate Foundation and Climate Policy Initiative shared strategies to enhance financial planning and project implementation in African nations. Tools like the NDC 3.0 Navigator were introduced to accelerate climate commitments.
The event underscored the importance of collective action and the exchange of best practices to overcome fiscal constraints while addressing global climate priorities.
The Sustainable Debt Coalition continues to drive progress by equipping countries with the tools and partnerships necessary for transformative financial solutions.
For more information, please contact:
- Mr. Thierry Watrin, Lead, Sustainable Debt Coalition (thierry.watrin@un.org)
- Mr. Nicolas Nahimana, Communication Lead, Sustainable Debt Coalition (guy.nahimana@un.org)
Issued by:
Communications Section
Economic Commission for Africa
PO Box 3001
Addis Ababa
Ethiopia
Tel: +251 11 551 5826
E-mail: eca-info@un.org