MENA Finance Ministries May Unlock Regional Climate Action

Finance Ministers know most clearly the economic consequences of climate change: both the risks posed by its mounting impacts to their economies, as well as, increasingly, the opportunities of climate action which could unlock $26 trillion globally in investments and create 65 million more jobs through 2030. 

They can also play a leading role by incentivizing climate-informed public expenditure and utilizing climate fiscal tools such as carbon taxes and emissions trading systems to cut emissions and prioritize low-carbon growth. 

The coalition includes 73 member countries representing over 35% of global carbon emissions and 65% of global GDP (2020) and is tasked with helping countries transition to low-carbon and resilient environments. Members of the Coalition sign on to the 'Helsinki Principles' (HP), a set of six non-binding principles that promote national climate action, especially through fiscal policy and the use of public finance.

Recently, four countries from the MENA region have joined the Coalition: Egypt, Morocco, Bahrain and Iraq.  However, most of the MENA countries are still missing (including Jordan, UAE, Saudi Arabia, Algeria, Libya, Israel) which makes the region the least represented in the Coalition.

According to the World Bank, It is important that ministries of finance in the MENA region participate in these global discussions and are up to date on the roles that ministries, Central Banks, and other government institutions can take,  and are taking around the globe, to mainstream climate change in their economies. The crucial involvement of ministries of finance will further enable the World Bank to support countries through lending and technical assistance based on a whole-of-government approach to climate change action.

For more reading see: World Bank.