Banks urged to drive green growth and digitalization for climate ... - Climate Champions
Banks urged to drive green growth and digitalization for climate action in the Arab region - Climate Champions
Banks urged to drive green growth and digitalization for climate action in the Arab region
Banking sector must play bigger role in transitioning towards green economy and achieving climate change adaptation
Dr. Mahmoud Mohieldin, UN Climate Change High Level Champion for Egypt, said that banks should play a bigger role in transitioning towards green economies by investing in climate projects.
This came during a meeting with the Net Zero Banking Alliance (NZBA) members, which discussed the role of banking sector in the transition to net zero in New York, attended by GFANZ and UNEP FI representatives.
Mohieldin stated that the banking sector’s fulfillment of its net zero commitments will reflect on economies in general and will play a crucial role in involving customers in the emissions reduction process.
Dr. Mohielin addresses members of the NZBA in New York during Climate Week.
He noted that banks are increasingly integrating climate action into their strategies, and making progress in implementing comprehensive climate commitments in finance activities, explaining that the global stocktake will emphasize the urgent need to accelerate mobilizing climate finance by increasing the flow of public and private finance for climate and nature activities.
Mohieldin confirmed the important role of banks in stimulating investment in activities of energy transition, and channeling finance towards addressing the escalating risks of climate change to developing countries and restoring natural capital and biodiversity, stressing that the quality of finance and its efficiency in protecting the most vulnerable communities is no less important than mobilizing it sufficiently.
He added that the Five Regional Roundtables resulted in a large number of climate and development projects that the banking sector can contribute significantly and effectively to their financing and implementing.
Arab region has great opportunities to harness digitalization and AI in making progress in implementing climate action, and Egypt’s NISGP provides important model of mobilizing climate action at local level.
Mohieldin also participated in Digital for Sustainable Development (D4SD) event, Hosted by UNDP Regional Bureau for Arab States, where he stressed that digitization can contribute to achieving adaptation by providing smart early warning systems for all, and can contribute to reducing emissions by being included in transition towards clean energy resources.
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, explaining that this requires providing finance from its public and private resources, and developing relevant policies.
Dr. Mahmoud Mohielin at the D4SD event.
In this context, the High-Level Champion 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, saying 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.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”