Leaders and activists are in Paris to seek a financial response to the climate emergency and poverty

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World leaders, international organizations, and activists have convened in Paris for a two-day summit aimed at addressing the pressing issues of poverty and climate change by reshaping the global financial system.

Developing nations highlight the outdated nature of the current system, wherein major economies like the United States, Europe, and China, responsible for the majority of climate damage, leave the poorest countries to bear the consequences.

The Paris summit takes place amidst the backdrop of the COVID-19 pandemic, the Ukraine war, and a global debt crisis, all of which have resulted in decreased life expectancy and increased poverty worldwide, according to the United Nations Development Program.

French President Emmanuel Macron, the organizer of the summit, emphasized the interconnectedness of combating poverty, mitigating global warming, and safeguarding biodiversity. He stressed the need for collective agreement on the best strategies to address these challenges in developing and emerging countries.

The summit aligns with the proposal put forth by Barbados Prime Minister Mia Mottley to facilitate financing access for climate-vulnerable nations. Mottley and other advocates argue that developing countries face exorbitant interest rates that impede their ability to fund adaptation projects such as constructing sea walls, implementing green energy initiatives like large-scale solar farms, or making payments on existing loans when climate-related disasters occur.

However, activists express concerns that the summit might not meet expectations. Harjeet Singh, head of global political strategy at Climate Action Network International, asserts that the current financial system requires a substantial overhaul rather than mere superficial changes. While acknowledging the presence of positive ideas, Singh contends that they fall short of the necessary measures.

It is important to note that the Paris summit does not possess the authority to make formal decisions, as emphasized by French organizers. Nonetheless, its purpose is to provide strong political impetus for key issues that will be addressed in forthcoming climate conferences and other international meetings.

Demands from climate activists and developing nations include the cancellation of debt, public financing for climate action (especially adaptation measures), and accountability for polluters to bear the costs of their climate impacts.

Furthermore, rich countries are urged to fulfill their existing commitments. On Thursday, experts are expected to announce that the pledge made in 2009, reaffirmed at the 2015 Paris climate summit, to provide $100 billion in annual aid to poor nations for addressing global change will be met for the first time this year.

The summit will also focus on necessary changes within the World Bank and the International Monetary Fund regarding their lending and granting practices toward the most vulnerable countries. These institutions have faced criticism for their failure to incorporate climate change considerations into lending decisions and for being influenced predominantly by wealthy nations like the United States.

Participants are expected to endorse a tax on greenhouse gas emissions stemming from international shipping, with the goal of enabling its adoption at a July meeting of the International Maritime Organization.

To generate more funding, activists advocate for a tax on the fossil fuel industry and financial transactions. However, these proposals currently lack support from wealthier nations.

Debt restructuring and cancellation will also be discussed, given the increasing number of countries grappling with unsustainable debt exacerbated by climate change issues. Although a clause for debt suspension in countries affected by extreme climatic events may be debated, activists highlight that it would not impact existing debt.

Cécile Duflot, Oxfam France’s general director, emphasizes the historical political responsibility of wealthy nations and the obligation of solidarity towards the poorest countries. She calls for radical measures that align with the scale of the problem at hand.

Climate activists staged a demonstration near the Eiffel Tower, displaying banners with messages such as “End fossil finance” and “Make polluters pay.”

Among the attendees at the summit are forty heads of state and government, including leaders from poor and climate-vulnerable nations. Only two representatives are from the Group of Seven (G7) most developed countries: President Macron and Chancellor Olaf Scholz of Germany. The United States is represented by Treasury Secretary Janet Yellen and climate envoy John Kerry.

Other participants include China’s Prime Minister Li Qiang, Brazil’s President Luiz Inácio Lula da Silva, European Commission President Ursula von der Leyen, United Nations Secretary-General Antonio Guterres, World Bank head Ajay Banga, and IMF President Kristalina Georgieva. Prominent climate activists Greta Thunberg and Vanessa Nakate are also expected to attend.

Please note that this text has been rewritten for clarity and conciseness.

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• Paris Agreement
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