POLITICS

UN chief Guterres asks public development banks to do more to accelerate job growth |

While addressing the 2021 Finance in Common Summit in Rome, the United Nations Secretary-General Antonio Guterres urged public development banks in a video message to do more to “green the balance sheet.” On Wednesday, as per the press release by the UN, Guterres emphasised by saying, “You spearheaded the green bond market – now is the time to do more to green the balance sheet.” 

As public development banks can reach from global to local, the UN chief added that they are the important partners towards the quick recovery from the COVID-19 outbreak. He emphasised that the public development banks’ united declaration at the inaugural Finance in Common Summit last year was a significant indication of purpose. He further urges all the public development banks to transform that purpose into specific, time-bound goals and strategies to synchronize their operations and regulations with the 2030 Agenda, while keeping the 1.5°C objectives insight. 

The Support of public development banks to generate job and social protection

As per the UN release, Guterres said, “We must fully integrate a forward-looking and preventative lens in our work and bolster resilience to future shocks.” He went on to say to the public development banks that by the year 2030, they must achieve universal social protection, must guarantee that macroeconomic and labour policies which are aligned to promote a fair transition; and invest substantially in creating jobs and reskilling strategies that increase possibilities for women and effectively equip young generations. 

Their cooperation for the Global Accelerator for Jobs and Social Protection is crucial for achieving a more equitable resurgence and achieving the Sustainable Development Goals (SDGs), the Secretary-General added. Addressing the public development banks, he even revealed, “Your financing decisions can either entrench developing countries in high emission, fossil fuel-dependent development pathways with a high risk of locking in stranded assets or facilitate the transition to renewable economies”.   

UN chief further noted that this also implies in the case of the COVID-19 rehabilitation, when developing nations are dealing with the triple problems of the pandemic, debt, and climate change. He also described that this will lead to phase out all fossil fuel finance, starting with coal. Thus, he urged to redirect these investments to renewable energy to guarantying universal access to electricity. He also asked the governments to increase adaptive response and resilience funding to nearly 50% of total public climate finance. 

The senior UN official encourages them to implement mandatory climate risk declarations, adjacent to the Task Force on Climate-Related Finance Disclosures’ recommendations. “We need a stronger, more integrated and networked multilateral system – with public development banks as central players,” said Guterres. 

(Image: AP)

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