Paris Summit Aims to Reform Global Financial System for Climate Change Action

The world's financial leaders convened in Paris, France, recently, for a summit aimed at initiating a more comprehensive intergovernmental dialogue and decision-making process. The gathering, known as the Paris Financing Pact Summit, sought to address the impact of climate change on vulnerable nations, particularly within the framework of the United Nations.

Experts argue that this initiative represents a step towards tackling climate change by reforming the global financial architecture. The intended outcome is to enable countries to effectively combat and adapt to this challenge while considering the "losses and damages" suffered by the most vulnerable nations. The summit brought together Heads of State and Governments, including Nigeria's President Bola Ahmed Tinubu, along with high-level representatives from UN institutions, international financial organizations, NGOs, and private non-state actors.

While optimism surrounds the summit's potential to alleviate poverty and mitigate the adverse effects of climate change on the global financial system, there is also awareness of the traditional hypocrisy exhibited by Western countries, particularly regarding issues affecting the developing world, including Africa. Even before the summit concluded, concerns emerged that affluent nations were hesitant to address the Global South's crucial demands for debt relief and new financing mechanisms for climate action.

For example, the Cuban delegation succinctly articulated the precarious situation faced by the developing world, including Nigeria. They highlighted how the current international economic and financial order is profoundly unjust, undemocratic, speculative, and exclusionary, disproportionately burdening developing nations. This system perpetuates underdevelopment, enriching a select few while exploiting the third world through debt, the prevailing international financial architecture, and coercive measures.

While participation in such significant global summits is commendable, it is crucial to ensure that outcomes serve mutual interests rather than perpetuating colonial formulas or renewed forms of domination in the developing world. This newspaper firmly believes that a new and equitable international financial order is urgently needed. Genuine reforms should address governance, representation, and access to financing, respecting the legitimate interests of developing countries.

Given the prevailing inequalities in the world order, there is a compelling need to establish mechanisms to measure progress in terms of sustainable development. Additionally, greater access to financial resources, favorable conditions, and adequate technical support must be provided to developing nations. The challenges posed by climate change have reshaped the nature of development issues, necessitating a globally agreed climate agenda based on the principles of equity, shared responsibilities, and respective capabilities.

Regrettably, the goal to mobilize $100 billion annually for climate finance by 2020 remains unmet, despite numerous climate change conferences, including the recent COP27 hosted by Egypt. Furthermore, there is a need to prioritize the financial challenges faced by developing countries, as emphasized by President Tinubu at the summit. Africa and the third world require elevated attention from world leaders, similar to the focus placed on environmental issues.

The wealthy nations of the international community must also acknowledge the severe financial and economic crisis that African countries have experienced in the aftermath of COVID-19. Public resources alone are insufficient to address these challenges. Therefore, a concerted effort is necessary to attract private capital that can help Africa compete on a global scale.

Nevertheless, despite the obstacles confronting African countries, they bear a responsibility to implement measures that promote equal competition with the rest of the world. In the meantime, the proposal put forward by French President Emmanuel Macron to develop a Net-Zero Data Public Utility (NZDPU) is welcomed, as it offers an open and free repository that can greatly benefit African countries.

It is noteworthy that Nigeria enacted the Climate Change Act in 2021, establishing the Climate Change Council led by the President himself, underscoring the significance of the matter. Nigeria has also established a climate change fund and a National Action Plan, demonstrating the country's commitment to achieving the net-zero target by 2060. While these policy positions are commend