Macron calls for massive investment to respond to climate emergency and poverty

French President Emmanuel Macron called Thursday for concrete solutions and massive investment for developing countries at the start of a two-day summit aimed at seeking better responses to tackle poverty and climate change issues by reshaping the global financial system.

Speaking in Paris, Macron said no country should have to choose between “reducing poverty or protecting the planet.”

The summit, hosted by France, is bringing together more than 50 heads of state, world finance officials and activists. They will discuss ways of reforming the global financial system and address the debt, climate change, and poverty crises.

Macron called for a “financing jolt,” insisting on the need for more investment from both the public and private sectors, and the crucial role played by international institutions.

“Faced with these challenges at the same time — poverty, climate and biodiversity — we must invest way more, and we are not up to the task,” he said.

Macron praised the International Monetary Fund’s initiative to allocate more funds to low-income countries through Special Drawing Rights, which are an IMF international reserve asset that can be exchanged for hard currency.

The Paris talks also come as the COVID-19 pandemic, the war in Ukraine and a global debt crisis have led to a drop in life expectancy and an increase in poverty in most countries around the world, the United Nations Development Program reported.

Developing nations point to an outdated system where the United States, Europe, China and other big economies that have caused most climate damage are leaving the poorest countries to deal with the consequences.

The Paris summit comes in the wake of a plan championed by Barbados Prime Minister Mia Mottley to ease access to financing for climate-vulnerable countries. Mottley and other proponents have argued that developing countries are forced to pay such high interest rates that they struggle to finance adaptation projects, like sea walls, or green energy initiatives, like large solar farms, or simply make payments on outstanding loans when climate-infused disasters strike.

Activists fear the talks won’t meet expectations.

“The current financial system does not just need a bandage, it needs an intensive surgical intervention,” said Harjeet Singh, head of global political strategy at Climate Action Network International.

“There are some good ideas on the table,” he noted, “but I must mention that they don’t really go far enough.”

The Paris summit has no mandate to make formal decisions, French organizers stressed, but it aims to give a strong political impetus to key issues to be discussed in upcoming climate conferences and other international meetings. Macron, however, stressed that the summit should offer “very concrete solutions,” pledging to draw a list of proposals that should be accompanied by a progress-tracking tool. (AP)