Minister of Planning, Economic Development and International Cooperation said the increasing development finance gap and the challenges of climate action represent a major challenge.
Concessional development financing is insufficient to bridge the increasing funding gap, said minister Rania El Mashat.
She made the remarks during her participation in the inaugural events of the Forum on Global Action for Shared Development in Beijing hosted by the Chinese International Development Cooperation Agency (CIDCA).
Mashat delivered a speech at a high-level session titled “Joint Actions to Promote Sustainable Development.”
Dr. Mostafa Madbouly, Egypt’s Prime Minister, also addressed the forum virtually representing Egypt.
In her remarks, Minister Mashat emphasized the importance of convening the second edition of the Conference of the Forum on Global Action for Shared Development, highlighting her participation in the first edition last July.
The minister noted that holding the second edition following her appoi
ntment as Minister of Planning, Economic Development, and International Cooperation enhances comprehensive and constructive partnership efforts with the Chinese side across various fields.
Mashat affirmed that pursuing sustainable development is of paramount importance, stating that achieving sustainability requires not only economic growth, but also ensuring inclusive development.
This underscores the importance of striving for a better future for all, ensuring no one is left behind in the development process, she said.
Mashat stressed that the principle of “state ownership” is crucial in advancing the sustainable development agenda, particularly in coordinating efforts in light of sustainable development goals.
Mashat indicated that state ownership ensures that development occurs more equitably and justly.
Mashat presented several proposals to overcome these challenges, including mobilizing additional funding through enhanced engagement among all relevant entities to unlock trillion-dollar financing fr
om the private sector and other development actors, especially NGOs, while simplifying access requirements to multilateral development banks and climate funds to ensure effective and equitable allocations.
Additionally, Mashat emphasized the importance of enhancing debt sustainability in middle-income and low-income countries to improve credit ratings, reduce risks, and increase private sector confidence to encourage further investments.
Furthermore, Mashat highlighted the significance of preparing a list of investment-attractive projects aligned with the Paris Climate Agreement, contributing to the realization of national priorities.
In this context, Mashat underscored the need to stimulate private sector involvement in development and climate action by promoting blended financing through multilateral development banks and international financial institutions, thereby enhancing investor confidence and reducing capital costs in developing countries.
The Minister also noted the importance of improving the
resilience and efficiency of low- and middle-income countries by developing strong and adaptable policy and regulatory frameworks to explore and leverage opportunities in carbon credit markets, ensuring country ownership and maximizing benefits.
Moreover, Mashat reiterated the significance of enhancing transparency and accountability in climate finance through budget tracking mechanisms, conducting periodic reviews of climate spending, and institutional assessments at the national level, while developing consistent and comprehensive monitoring and reporting systems based on unified methodologies at the international level.
Additionally, the Minister stressed the necessity of diversifying sources of development finance, relying on national plans that consider the priorities of different countries in implementing the SDGs.
Mashat noted that Egypt is committed to building a sustainable future through effective development planning and enhancing cooperation with international partners, while also working to in
crease green projects as a share of public investments alongside ongoing efforts with development partners to drive green transformation in the country.
Mashat stated that advancing South-South Cooperation and Triangular Cooperation also enhances the benefit from successful experiences and their replication.
She emphasized the importance of mainstreaming the principles of equitable financing across all development activities and climate finance, which align the SDGs with national development objectives; promoting equitable pathways for climate financing by affirming the need for low- and middle-income countries to access climate finance both in quantity and quality.
The Conference of the Forum on Global Action for Shared Development is hosted by the CIDCA, with participation from over 200 representatives of governments, decision-makers, and international institutions to discuss various issues, primarily focusing on South-South cooperation, innovation, and efforts to enhance collaborative action for achievi
ng the 2030 SDGs.
Source: State Information Service Egypt
