French President Emmanuel Macron has announced that France will sign an agreement with Bangladesh in the first half of 2024 to finance climate change adaptation and address loss and damage.
The French Development Agency will contribute €1 billion ($1.1 billion) in investment, with the IMF extending up to $1 billion worth of Special Drawing Rights (SDRs) in new loans. Macron emphasized the need for global governance mechanisms to tackle pressing challenges, such as access to water. He revealed plans for a One Water Summit with Kazakhstan during the UN General Assembly in September 2024.
To support the most vulnerable countries, Macron urged the creation of conditions enabling them to finance climate-change mitigation and adaptation. He emphasized the necessity to go beyond traditional development assistance and implement unorthodox fiscal and monetary policies, citing the release of over $100 billion in SDRs for vulnerable countries.
Macron highlighted changes in debt rules, the mandate of multilateral development banks, and the initiation of a new loss and damage fund, emphasizing the importance of mobilizing private insurance mechanisms against climate risk.
The French president stressed the need for reforming the World Bank and the IMF, addressing their underfunding and the exclusion of emerging and developing countries from governance. Macron called for a review of Bretton Woods governance to ensure equal footing for all negotiating countries. Amid global crises, he urged a focus on collective efforts to reduce greenhouse gas emissions, achieve carbon neutrality by 2050, save biodiversity, and combat poverty and inequality.
Macron called on the world’s advanced economies, particularly the G7 countries, to transition away from fossil fuels by specified timelines. He emphasized the responsibility of emerging economies, including China, in committing to decarbonization. Macron advocated for accelerating financing of renewables and nuclear power in these countries. Additionally, he proposed the introduction of green and brown interest rates, a climate clause in trade agreements, and the development of a ‘bio-economy’ to pay for nature’s services.
In terms of international cooperation, Macron highlighted the importance of reforming the voluntary carbon market and establishing an international carbon and biodiversity exchange. He emphasized the need for robust criteria to prevent greenwashing and remuneration for local communities. Macron underscored the significance of protecting the ocean as a crucial carbon sink, announcing the convening of the third UN Ocean Conference in June 2025 to update international law and address issues such as plastic pollution and deep-sea protection.
