Emmanuel Macron wants a global “new financial pact”. The Head of State made this proposal at the G7 summit to avoid “choosing between the fight against poverty and the fight for the climate”. “I was able to present what will be the summit for a new Paris financial pact on June 22 and 23,” the president told reporters in Hiroshima, Japan, on Sunday on the last day of this meeting of the seven main industrialized democracies. to which emerging countries such as Brazil, India and Indonesia were also invited.
An ambitious goal
Paris had launched the idea of this summit last fall during COP27 in Egypt with the Prime Minister of Barbados Mia Mottley, whose small Caribbean island is on the front line in the face of the threats of climate change. The objective is ambitious: to reform the architecture of global finance to better respond to the challenges of global warming.
“We are going to carry out a reform agenda for the International Monetary Fund and the World Bank to provide more financing to the countries that need it most,” explained Emmanuel Macron. It also intends to “develop more private financing through guarantee mechanisms”.
A “funding shock”
The French head of state explained this “funding shock” project to all his interlocutors in Hiroshima, whether major donor countries such as Brazilian President Lula or Indian Prime Minister Narendra Modi.
“We do not have to choose between the fight against poverty and the fight for the climate and biodiversity”, he pleaded. “Just transition is the only answer” and “it therefore presupposes a concessional shock and a stronger mobilization of our instruments”.
“It’s the only way to avoid a division of the world,” he insisted, noting that “more and more countries in the South have the feeling” that they “are being asked to make climate efforts when they have not been given enough help to fight against poverty”.