Locations
In Glasgow, at the 26th global climate summit, progress was made on many fronts:
We had an agreement to phase-down coal and end fossil fuel subsidies,
We got significant new pledges to reduce deforestation,
And, perhaps less well known, a staggering $130 Trillion in Capital commitment by leading financial institutions toward Net-Zero (the so-called Global Financial Alliance for Net Zero).
We are still lagging however on the one metric that counts the most: reducing carbon emissions adequately in order to limit temperature rise to under 1.5°C and avoid catastrophic damage to the global commons.
We have hard choices ahead of us: On the one hand, we can get serious about building a more inclusive and green economy.
On the other, we can opt for more of what Swedish activist Greta Thunberg called *bla bla bla.*
An economic system that creates more jobs, wealth and more equal societies will require a paradigm shift and structural transformations from the ground up.
Not least of these are reforms to the financial system and financial policies, as well as the development of coordinated public investments aimed at innovation leaps.
I see that opportunity in Kigali International Finance Centre. KIFC will be Rwanda’s turbo charger for “changing finance” and “financing change.”
As such, I am delighted to join you, CEO, at this kick-off meeting of the Senior Level Steering Committee for sustainable finance that will guide the development of the roadmap and action plan for placing sustainable finance at the heart of the Kigali International Financial Center.
This exercise is key to realizing the bold vision to make Kigali a regional financial center—one not only able to attract new investors, but also one that leads by example in aligning new financial flows to the global Sustainable Development Goals.
If we get it right, it could unleash new value. I understand, for example the West African Development Bank has raised an exceptional $3 billion USD, in a three year bond to help alleviate the economic and social impact of COVID-19 pandemic. The so called ‘Fight Covid-19 bond’ floated on the Luxembourg Stock Exchange and was significantly oversubscribed. It was also the world’s largest social bond market placement at the time of issuance.
IFC could engender similar value.
At UNDP, along with our global centre of excellence FC4S (Financial Centers for Sustainability) we shall continue to provide technical assistance to build national capacities and facilitate the joining and blending of local and international capital to promote Africa’s SDG agenda, and to mobilize additional private resources toward Rwanda’s ambitious $11 Billion Climate Action Plan.
We believe the KIFC is exactly the kind of institution needed to help Rwanda and the continent finance a greener and more inclusive economy.
I look forward to working with key stakeholders to this initiative. Rest assured, UNDP will be a faithful partner to accompany this journey.
Most of us left Glasgow with a sense of achievement.
But if we are to marshal resources at scale, tap into our collective brainpower, as needed to make Glasgow a success, then we need to inspire the private sector, finance the development of innovative technologies that the private sector will not pursue on its own. The Kigali International Finance Centre is the right starting point.
