By Valerie Volcovici and Simon Jessop
SHARM EL-SHEIKH, Egypt – (Reuters) – U.S. climate envoy John Kerry said on Tuesday he desires to give you a plan by April to reform the multilateral development banks system to unleash “lots of of billions” of dollars to assist vulnerable countries combat and adapt to climate change.
Kerry said he desires to work with Germany to give you a technique by the following World Bank Group meetings in April 2022 to “enlarge the capability of the bank” to place extra money into circulation and help countries cope with climate change.
“There isn’t any reason why not. We’re the biggest shareholders, we want to call the meetings, put out the policy and make it occur,” he said at a side event at COP27.
He said any latest strategy shouldn’t require latest finance from donor countries or for the banks to just accept a lower credit standing.
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Kerry said if the World Bank and regional development banks could increase their lending by the lots of of billions of dollars, it could leverage trillions in capital from the private sector and other sources.
“We have got to get the MDBs to do what the MDBs can do, and they don’t seem to be today. And we will free more finance by unleashing what’s a permissible way of enlarging the capability of the bank to really leverage itself and put extra money into circulation,” he said.
Because the delivery of billions of dollars pledged by wealthy countries to help countries to adapt to and combat climate change falters, the US, Germany and other major economies have joined some middle-income countries like Barbados in calling for a “fundamental” overhaul of the World Bank and other international financial institutions.
Kerry’s comments come amid growing calls by civil society groups, developing countries and academics, in addition to U.S. Treasury Secretary Janet Yellen, for a latest “Bretton Woods,” a reference to the conference held in 1941 that led to the creation of the International Monetary Fund and the World Bank.
These calls intensified after World Bank President David Malpass in September initially declined to say at a public event whether he accepts the scientific consensus on global warming, which drew condemnation by the White House.
Kerry said he would work with German State Secretary for Economic Cooperation and Development Jochen Flasbarth to develop the plan.
“We just need a leadership that is able to rise up, do what the laws allow,” he said.
(Reporting by Valerie Volcovici; Editing by Angus MacSwan)
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