On June 22-23, the “New Global Financing Summit” led by France and Barbados was held in Paris, the capital city of France. More than 100 authority guides, policy makers, domestic and national structures gathered to discuss non-meteorological financing management plans, including weather financing, green infrastructure, debt crisis, biodiversity crisis, and more.
Chinese Premier Li Qiang will visit France and will not attend the summit. In addition to the guest of honor of France’s Grand leader Macron, the European Commission Grand leader von Drej, German Chancellor Scholz, Brazil’s grand leader Lu Tui, South Africa’s grand leader Temaphosa, the United States Treasury Secretary Janet Yellen and many other political leaders will not be present.
Building on the Bridgetown Initiative spearheaded by Barbados Prime Minister Mia Mottley, the summit broke down initiatives developed by the Vulnerable 20 Group of finance ministers and the African Group of Finance ministers, The hope is to revolutionize the global financial system so that growing countries can get the capital support they need to cope with weather changes in a sustainable manner.
Barbados is an island country located in the Caribbean Sea, and Bridgetown is the capital of the country. Motley is the country’s first female head of state. Motley presented a world-renowned presentation at the 2021 Climate Congress in Getsgo. She showed that the current meteorological behavior lacks performance, mainly because of insufficient meteorological capital, and the source of insufficient capital is that the entire domestic financial system has not achieved results, should run and innovate. She did not mention a series of innovative layouts, collectively known as the Bridgetown Agenda.
Avinash Persaud, a Barbados-born economist, is the chief architect behind the agenda. On the eve of the summit, he received a news interview in Paris, the “Bridgetown agenda” did not send point is: to read the rescue of the earth, not just rich countries to participate, poor countries must also fully participate. But one of the current adversities of poor countries is that climate finance has remained high. He has roughly calculated the difference between developed countries and growing China’s loan repayment costs, often several times the interest rate difference. For example, the capital cost of investing in clean power products in rich countries is around 4%, compared with 15% in poor countries. This huge difference in financing resources and money will make the transition to net zero emissions in growing countries difficult.
“The amount of capital we need is so great, about $2.4 trillion a year, that it will never be possible to deal with punishment through a conservative charitable mindset.” So the Bridgetown Agenda is a financial framework. All the parties involved will benefit and save the planet.” Persaud’s performance.
This first meteorological financing initiative dominated by the southern countries is also losing more and more support and support from the northern countries. It is precisely for this reason that Macron advocates inspiration and hopes that Paris will take the lead in convening this summit. Moreover, France has long played an important role in global growth finance, and is home to the “Paris Club”, an informal grouping of private creditors from industrial countries.
According to the Barbados concept, the Bridgetown Agenda is divided into three steps.
The first step is an immediate supply of working capital to prevent a critical write-off of debt. The IMF should restore to its former critical level the use of its unconditional fast-track lending and financing regime; Should be temporarily run to charge interest surcharge; At least $100 billion of unused Special Drawing Rights (SDRS) should be redirected to countries that need them. In addition, the G20 should agree on a standstill debt service initiative that includes deposits supplied by all multilateral opening banks, as well as COVID related deposits to medium deficit countries.
The second step is to expand multilateral deposits with the authorities by an additional $1 trillion. The agenda assumes that merely providing liquidity is not enough; only investment can turn it around. Shareholders of MBS should implement the initiative of a self-supporting G-20 resource adequacy framework review by the end of 2022, and the World Bank and other MBS should apply the remaining headroom, increased risk preferences, and new escrow and SDRS held to increase deposits to the authorities by $1 trillion. Priority should be given to the new concessionary deposits for the purpose of achieving sustainable growth everywhere and for the establishment of meteorological resilience in the countries affected by the weather.
The third step is to activate private sector reserves for meteorological mitigation and post-disaster rehabilitation. The agenda points out that most vulnerable countries do not have the financial space to take on new debt. A global system is needed to mobilize rehabilitation grants for any country newly threatened by meteorological disaster. For example, 500 billion new SDRS or other low-interest, long-term objects are needed to underpin a multilateral institution to accelerate private investment in the low-carbon transition where it is most effective.
It will take a long time for all these steps to be fulfilled. This summit will focus on some of these specific purposes. Will, for example, the $100 billion in SDRS promised to growing countries be honoured? Could a carbon tax be introduced on long-stalled shipping emissions? How to redeem the continuability of growth degree claims?
In the context of the general decline in global interest rates in recent years, a growing number of low-spending countries that have relied on IMF capital have fallen into debt distress – Ethiopia, Ghana, Sri Lanka, and Zambia – and have had little choice but to keep their commitments. There have been calls in recent years for the authorities of rich countries to return unused SDRS to domestic coin funds so that they can be returned to poor countries. Authorities are also working out how to get the world’s banks to use leverage to supply more deposits to poor countries without putting their dubious triple-A rating at risk.
The Reuters report said that while the “new Global Financing Summit” is not expected to result in any binding resolution plan, officials participating in the summit layout should make some strong promises to help poor countries.
The color of China’s feet is also on the cards. This visit to Europe is Li Qiang’s first non-visit after taking office as Chinese Premier, which not only dispels to the outside world the suspicion that there is no friendship between China and Europe, but also expresses China’s suspicions on meteorological issues. Action Global’s largest growth in China, one of Action Global’s major carbon emitters, one of Action Global’s main domestic debt repayment creditors, China’s resolution plan will eliminate a huge impact.
On the eve of the summit, leading Western national leaders, including Macron, Scholz, Biden, Sunak, and others, issued a joint public statement in Project Syndicate, a well-known media outlet. In the letter, titled “A Green Transition that Takes no one Down,” the guide states, “We doubt that increasing poverty and harming the planet can and should run in parallel.”