Latest news with #climate finance
Arab News
2 days ago
- Business
- Arab News
At UN forum, Pakistan urges global financial reforms, debt relief to bridge SDG funding gaps
ISLAMABAD: Pakistan's Deputy Prime Minister Ishaq Dar on Monday stressed the need for concessional financing and debt relief for developing nations to bridge funding gaps in meeting global sustainable development goals (SDGs). The comments came during Dar's address at a debate of the High-Level Political Forum on Sustainable Development's (HLPF) Ministerial Segment in New York for the follow-up and review of the 2030 Agenda for Sustainable Development and its 17 SDGs. The 2025 HLPF is themed around advancing sustainable, inclusive, science- and evidence-based solutions for the 2030 Agenda and its SDGs, including good health and well-being, gender equality, decent work and economic growth. Speaking at the forum, Dar said only 35 percent of the Agenda 2030 SDGs were on track and the compounding effects of the pandemic, food, fuel and finance crises as well as intensifying climate impacts had reversed the hard-won development gains and deepened inequalities. 'While national efforts are essential, these cannot succeed in isolation,' he said, calling for a 'deep reform' of the international financial architecture to implement the SDGs. 'Developing countries need scaled up access to concessional and grant-based resources, meaningful debt relief, and scaled-up climate finance in order to bridge the SDG financing gap.' The statement comes as Pakistan treads a long path to economic recovery while facing adverse impacts of climate change, with extreme weather events frequently affecting the South Asian country in recent years. So far this monsoon, more than 200 people have lost their lives in Pakistan as heavy rains continue to last parts of the country. Dar said his country was scaling up climate action, targeting 60 percent renewable energy by 2030, and enhancing resilience through various initiatives. 'Our revised nationally determined contribution is nearing finalization,' he said. 'We have also undertaken key macroeconomic reforms to stabilize our fiscal outlook and make the investment climate even more attractive.' The Pakistani deputy PM said the Compromiso de Seville, a renewed global framework adopted at the Fourth International Conference on Financing for Development this month, offered a clear roadmap to tackle the challenges of financing sustainable development. The framework focuses on closing the $4 trillion annual financing gap for the SDGs, addressing debt crises, and reforming the international financial system. 'Its implementation must begin without delay,' Dar added. Dar is on a week-long visit to the United States to preside over the key events in the UN Security Council during Pakistan's presidency for the month of July, according to the Pakistani foreign office. He is also scheduled to hold a meeting with UN secretary-general as well as president of the UN General Assembly in New York.
The Herald
6 days ago
- Business
- The Herald
Climate fund targets wildlife bonds for every country in Africa
He said the move would require an investment of $150m (R2.6bn) from the GEF, which would be leveraged 10 times to provide a total of $1.5bn (R26.7bn) for conservation efforts through other borrowing. Money borrowed using wildlife bonds does not typically go onto the books of beneficiary governments, meaning they can offer much-needed financing to poorer countries, climate finance experts said. They usually target emblematic species to appeal to specialist investors and wealthy philanthropists, and their payouts are directly linked to conservation, meaning the better the result the less governments are usually required to pay out. The GEF hopes they can be expanded to include entire ecosystems such as wetlands, Boltz said. The push by the fund, formed after the landmark Rio Earth Summit of 1992, comes as aid and development funding cuts by the US and other major economies threatens some conservation projects. "Many countries are suggesting that in this tough official development assistance environment, maintaining the last level of replenishment may be difficult," Boltz said, "and we might need to try to do more with less". The GEF has in total invested $7.7bn (R137bn) in Africa in projects, including an $85m (R1.5bn) effort to fight desertification in the Sahel region. It is urging donors to replenish its cash for its next four-year cycle of programmes, starting next year. Its last fundraising for its cycle raised $5.3bn (R94bn), an increase of more than 30% from its last operating period amid a surge of support for international efforts to meet nature and climate targets. That funding round received money from 29 countries, with the US among the biggest donors, contributing $700m (R12.4bn). Reuters
Malay Mail
16-07-2025
- Business
- Malay Mail
How tariffs and taxes could derail Malaysia's climate ambitions — Mogesh Sababathy
JULY 16 — At a time when Malaysia must accelerate its climate transition, can we afford foreign and domestic policy shocks that destabilize our climate finance and green technology agenda? The recent announcement by the US President Donald Trump to impose a sweeping 25 per cent tariff on 'any and all Malaysian products' starting August 1, 2025, has jolted Malaysia's economy and potentially, its entire energy transition trajectory. This move, posted not only threatens our US$80 billion annual trade relationship with the US, but risks undercutting the financial and industrial scaffolding needed to meet our net-zero ambitions by 2050. For a country that has pledged a 45 per cent reduction in carbon intensity by 2030, this is not just an economic setback but also a stress test of our climate governance, resilience, and readiness. The potential impact is immense. Sectors like electrical and electronics (E&E) which comprise nearly 40 per cent of our exports stand particularly exposed. With the Green Technology Master Plan relying heavily on E&E to drive decarbonised manufacturing, this development places our climate-linked industrial strategy in jeopardy. At the same time, Malaysia's expanded Sales and Service Tax (SST) which came into effect July 1, 2025 adds pressure from within. Over 4,800 previously exempt items, including industrial equipment and low-emission machinery, are now taxed at 8 per cent, up from the previous 6 per cent. While the SST expansion is projected to yield RM3 billion in additional revenue, its timing couldn't be worse. The Federation of Malaysian Manufacturers (FMM) warns that these cascading tax burdens will inflate costs, shrink margins, and deter future investment especially in capital-intensive green infrastructure. The National Energy Transition Roadmap (NETR), launched in 2023, sets ambitious targets: increasing renewable energy in the national mix to 70 per cent by 2050, developing CCUS (Carbon Capture, Utilisation & Storage), and attracting RM435 billion in investment. But these goals rely on a strong private sector, foreign direct investment, and investor confidence. Reduced export earnings due to tariffs, paired with higher domestic operating costs from the SST, could stall clean energy adoption, battery storage scaling, and smart grid investments. Small and medium green-tech enterprises already navigating tight financing margins may pivot to survival mode, postponing R&D or abandoning green upgrades entirely. This fiscal constriction directly threatens the creation of 23,000 green jobs forecasted under NETR, and it risks reducing Malaysia's contribution to global clean energy supply chains at a time when demand is rising. On the other hand, Malaysia's Voluntary Carbon Market (VCM), launched via the Bursa Carbon Exchange (BCX) in late 2022, was one of Southeast Asia's most promising climate finance innovations. With a projected market value of US$237 million by 2030, it was expected to fund reforestation, conservation, and industrial decarbonisation projects. However, the VCM and the upcoming carbon tax and Emissions Trading Scheme (ETS) under the National Climate Change Bill (Ruupin) are all sensitive to macroeconomic conditions. Historically, economic downturns or trade disruptions often lead governments to delay carbon pricing reforms in the name of economic recovery. Malaysia is no exception. Unless insulated, our carbon governance mechanisms may stall or regress under fiscal and political pressure just when they're needed to drive long-term decarbonisation and attract green capital. Climate change disproportionately affects the poorest and most vulnerable communities in Malaysia from coastal erosion in Sabah to urban flooding in KL. But so too will economic instability. Tariff-related export losses could result in job cuts in key industrial areas, while SST inflation will raise living costs. When people are forced to choose between short-term survival and long-term sustainability, the environment always loses. Without targeted support, our vision of a 'just transition' risks becoming rhetorical. The Ruupin framework, which emphasizes equity and protection for vulnerable populations, must be backed by resilient fiscal policy and progressive social safety nets not sacrificed in budget cuts driven by external shocks. Unless insulated, our carbon governance mechanisms may stall or regress under fiscal and political pressure just when they're needed to drive long-term decarbonisation and attract green capital. — Picture by Ahmad Zamzahuri In this regard, what can Malaysia do? Firstly, Malaysia must demand clarity on the tariff scope and seek exclusions for clean technology, solar components, and environmental goods, aligning with WTO environmental exceptions. Next, allocate funds from the new SST intake to fund VCM capacity-building, CCUS pilots, and green job retraining programs. SST exemptions or rebates for low-emission equipment, energy-efficient machinery, and carbon audit services must also be provided to incentivise clean industrial investments. Also, as the Chair of Asean this year, we also have an upper hand in using this moment to lead within Asean, pushing for regional carbon border adjustments and green mutual recognition agreements that support decarbonised exports. Lastly, fast-track funding for climate policy education, especially in carbon markets, climate law, and environmental economics, to prepare the next generation of climate experts. In conclusion, economic shocks will come and go. But the climate crisis is permanent and intensifying. As floods grow more frequent, air pollution worsens, and biodiversity collapses, the cost of inaction grows steeper each year. Trade policy and tax policy must serve, not sabotage our climate goals. Malaysia must not retreat from climate ambition in the face of tariffs or taxes. We must instead use these shocks to recalibrate our economic tools, reaffirm our global leadership in climate governance, and build a greener, more resilient Malaysia that doesn't trade short-term relief for long-term collapse. * Mogesh Sababathy is a National Consultative Panel Member to the Ministry of Natural Resources and Environmental Sustainability of Malaysia and a PhD Candidate at Universiti Putra Malaysia (UPM). ** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
