UN Climate Change High-Level Champion for Egypt and UN Special Envoy on Financing 2030 Sustainable Development Agenda, Mahmoud Mohieldin, has urged banks to play a bigger role in transitioning to green economies by investing in climate projects.
He made this statement at the “Net Zero Banking Alliance (NZBA) Members’ Event: The Role of the Banking Sector in the Transition to Net Zero” in New York, which was attended by NZBA Members, GFANZ, and UNEP FI Representatives.
Mohieldin said that the banks’ fulfilment of their Net Zero commitments would affect the economies in general and would involve the customers in the emissions reduction process.
He noted that the banks are increasingly integrating climate action into their strategies, and making progress in implementing their climate commitments in finance activities. He said that the global stocktake would emphasize the urgent need to mobilize climate finance by increasing the public and private finance for climate and nature activities.
Mohieldin stressed the important role of banks in stimulating investment in energy transition and channelling finance to address the rising risks of climate change to developing countries and to restore natural capital and biodiversity. He said that the quality and efficiency of finance in protecting the most vulnerable communities is as important as mobilizing it sufficiently.
He added that the Five Regional Roundtables resulted in many climate and development projects that the banking sector can contribute to their financing and implementation.
Mohieldin also participated in the Digital for Sustainable Development (D4SD) event, hosted by the UNDP Regional Bureau for Arab States. He said that digitization can help achieve adaptation by providing smart early warning systems for all, and can help reduce emissions by being included in the transition to clean energy sources.
Mohieldin said that the Arab region has great opportunities to harness digital transformation and AI in making great progress in implementing climate action and achieving SDG. He said that this requires providing finance from public and private sources and developing relevant policies.
He highlighted the National Initiative for Smart Green Projects (NISGP) in Egypt’s governorates, which aims to support the country’s digital transformation and encourage the use of technology in environment and climate projects. He said that the initiative combines digital solutions and environmental goals in a way that paves the way for smarter and more efficient practices to face the risks of climate change.
