How can the international financial system become more sustainable, social, and fair? And how can we better support poorer countries facing many global and other challenges such as climate change? These questions were the focus of a summit meeting in Paris, which Chancellor Scholz also attended.
Germany has already made far-reaching commitments in the area of climate finance in the past. “We will continue to do so and feel committed to our promises,” said Scholz.
“We need a just ecological turnaround that promotes sustainable development, alleviates poverty, and leaves no one behind,” said Federal Chancellor Olaf Scholz. It was, therefore, important to take responsibility for a new global financial pact at the Paris Summit and to discuss solutions.
The “Summit for a New Global Financing Pact” took place on June 22nd and 23rd in Paris at the invitation of French President Emmanuel Macron. In addition to numerous heads of state, representatives of international organizations, civil society, and the financial sector took part.
Bear responsibility together
It is important for the Federal Government not to leave the countries of the Global South alone with their major challenges. We share responsibility for hunger, poverty, and the consequences of artificial climate change. That is why we must tackle these challenges as a global community of states.
Germany has already made far-reaching commitments in the past – especially in the area of climate finance. “We will continue to do so and feel committed to our promises,” assured Scholz. However, it is also clear that sustainable global cooperation is needed for the future.
A win-win situation for everyone
Three points are particularly important to the Federal Government:
1. We must reform our international financial institutions, most notably the World Bank and the Multilateral Development Banks.
2. We must create sustainable development opportunities. This includes working together to combat climate change with the Just Energy Transition Partnerships, as already in place with Senegal, South Africa, and India. Last year, Germany launched the Global Shield, an instrument intended to help countries deal with natural disasters. And to strengthen cooperation on climate goals, Germany has founded an international, open, and cooperative climate club.
3. We must support local value creation in emerging and developing countries. These countries must benefit more from their resources. Scholz emphasized: “That also helps to create jobs there, and that is an important contribution.” The energy transition and the expansion of wind power and solar energy offer a special opportunity for this. We must also help ensure that fertilizers, for example, can be produced anywhere in the world and not just in a few places.
“This would also lead to the global economy becoming more resilient overall and the supply chains to be much broader, i.e. to a win-win situation for everyone,” concluded the Chancellor.