Minister of Finance says success of climate finance depends on translating political commitment to investments

Qatar's Minister of Finance Ali bin Ahmed Al Kuwari emphasized that translating political climate commitments into investments is crucial for effective climate finance. Speaking at the AIIB's board meeting, he stressed that developing countries currently bear a significant fiscal burden, with around USD 1.4 trillion paid in external debt in 2023.

This constrains their fiscal space for public investment. The Minister highlighted the pivotal role of the Asian Infrastructure Investment Bank (AIIB) in developing financing instruments, particularly climate policy-based financing, which has proven effective. Qatar has also taken steps domestically and internationally to support a sustainable economy, including investments in renewable energy and sustainable finance.

The Minister proposed reducing risks through guarantees and local-currency lending by development banks, easing debt burdens through policy-based financing aligned with IMF programs, and addressing program fragmentation with co-financing platforms. The AIIB's Climate-Focused Policy-Based Financing (CPBF), launched in 2024, aims to build an enabling environment for private capital participation in projects like renewable energy and climate adaptation.

Successful examples include Brazil's sustainable aviation fuel project, Bangladesh's budget and climate-planning reforms, and the development of carbon markets and climate-resilient health systems. The Minister called for coordinated partnerships among development banks, governments, climate funds, and the private sector to remove structural barriers such as market-entry restrictions, weak tariff frameworks, and fragile public utilities.

Egypt's Minister of Finance, Ahmed Kouchouk, shared his country's experience in renewable energy, noting that climate ambitions exceed the capacity of any single country or institution.