The Minister of Finance, Ken Ofori-Atta, has called for the reform of multilateral development banks (MDB) to address the needs of developing countries.
He said the reforms should include regional approaches to investment into the Green Transition agenda.
Currently, there are five MDBs – the World Bank, the inter-American Development Bank, Asian Development Bank, the African Development Bank and the European Bank for Reconstruction and Development.
Addressing a summit on a new global financing pact in Paris, France, the minister said the MDBs must focus on investment in renewable energy on the African continent to tackle issues of scale and speed.
He said a regional approach to green investment could also facilitate the resolution of the bankable projects conundrum in the developing world.
Organised by the French government, the two-day summit was aimed at facilitating the resolution of global challenges such as loss of biodiversity, global warming, debt and pandemics.
They also discussed financing required to meet global challenges and building solidarity among countries and other critical stakeholders towards a just green transition.
It also focused on restoring trust among partners by addressing the crippling debt of most countries in the Global South, mobilising more private sector resources by creating conditions for massive financing and unlocking innovative financing to avoid penalising countries that do not have their own resources.
Ghana was represented at the meeting by President Nana Addo Dankwa Akufo-Addo, Mr Ofori-Atta and the Minister of Environment, Science, Technology and Innovation, Dr Kwaku Afriyie.
Mr Ofori Atta said it was important to develop powerful coalitions that were willing to fight for humanity.
“As we coordinate our efforts to respond positively to the need for the development of a fit-for-climate global financial system, it is critical that we scale up the innovative climate financing mechanisms and speed up climate action to ensure that we maintain the 1.5 degree Celsius temperature limit,” he said.
The minister further called for the kind of leadership the world witnessed that led to the abolishment of apartheid, the drive behind civil rights movement and the development of the Bretton Woods institutions.
Mr Ofori-Atta urged the leadership of today to develop enlightened self-interest, particularly of issues of climate change, the adaptation of climate vulnerable countries and the formulation of more ambitious mitigation initiatives.
He also emphasised the need for leaders to ensure that the world speeds up action by establishing a global financial architecture that works for climate vulnerable countries.
The United Nations Secretary-General, António Guterres, who opened the summit, said many African nations were spending more on debt repayments than on desperately needed health care.
He, therefore, called for a debt relief mechanism that supported payment suspensions, longer lending terms and lower rates to make borrowing more affordable for poorer countries.
Mr Guterres also called for increased access to liquidity for developing countries via the IMF’s special drawing rights.
For his part, the President of AfDB, Dr Akinwumi A. Adesina, said it was important to have a common framework.
“The process has been way too slow and it treats only a small number of countries.
We need to have a more coordinated approach,” he stated.
Dr Adesina said enabling MDBs to leverage capital from SDRs for health, education and in other sectors would be impactful.