As climate change hits, UAE commits AED736 million to vulnerable countries
Fund goes to IMF’s Resilience and Sustainability Trust
The UAE – the host country of COP28 – has pledged AED736 million ($200 million) to support climate resilience in low- and middle-income economies and countries vulnerable to the growing impact of climate change.
The commitment, announced at the World Climate Action Summit held in Dubai, UAE, will be in the form of Special Drawing Rights (SDRs) pledged to IMF’s Resilience and Sustainability Trust (RST).
The RST is an International Monetary Fund (IMF) trust that provides long-term concessional funding for climate resilience and pandemic preparedness for IMF member countries. The RST supports climate resilience in low- and middle-income economies and countries vulnerable to the impact of climate change.
Approximately three-quarters of the IMF’s country membership is eligible for RST financing, including low-income members, middle-income countries, and small island developing states (SIDS).
COP28 President Sultan Al Jaber said: “The UAE is delighted to announce our SDR commitment to the RST. We are committed to supporting those countries and communities who have often contributed the least to climate change but are impacted the most.”
UAE Minister of State for Financial Affairs, Mohamed Hadi Al Hussaini, added: “The UAE’s allocation of funds to the RST is a testament to our commitment to advancing sustainable finance efforts and supporting countries most affected by climate change.
The Ministry of Finance in the UAE prioritises identifying climate financing gaps, assessing the impact of climate change mitigation policies on capital flows, and recognising the macroeconomic risks resulting from climate change. We work closely with partners from international financial organisations, such as the IMF, to enhance multilateral coordination in sustainable finance action.”
The RST has received more than AED147 billion ($40 billion) in SDR pledges, and 11 countries have been approved as recipients.
The UAE is hosting COP28 at Expo City Dubai from December 3-12, 2023.
Featured image: The sun sets over desert dunes planted with native trees in Dubai emirate, UAE. Image: Arnold Pinto
Last Updated on 3 months by Arnold Pinto