At climate finance summit, Macron stresses need for 'public finance shock'

In his opening remarks at the climate finance summit in Paris, French President Emmanuel Macron spoke of the need for "public finance shock" or a global surge of financing to fight the challenges of climate change and poverty. He said that changes were needed in the global lending system in order to ensure that low-income countries "shouldn't have to choose" between fighting climate change and poverty.

Macron said that the international lending system, of which the World Bank and the International Monetary Fund (IMF) are foundations, has been valuable in previous decades, but now it is "not completely suited" to tackle current challenges before the world.

"We can make it work much better if this money and these liquidities were at the service of progress on the planet and tackling this double challenge that I mentioned: poverty and climate change, (and) biodiversity," Macron said.

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Government and international leaders are gathered in Paris for a climate summit aiming to pin down a roadmap for easing the debt burdens of low-income countries while freeing up more funds for climate financing.

Macron added that along with a 'public finance shock', a massive private investment in green technology was needed in order to help the world transition to a low-carbon economy.

"Policymakers and countries shouldn't ever have to choose between reducing poverty and protecting the planet," he told an audience that included dozens of heads of state who have travelled to the French capital for two days of talks.

Macron said that world leaders, international organisations and the private sector needed to act immediately to change how the global financial system worked. If this is not done, all these stakeholders risk losing the trust of the people.

"If we miss the target... trust of our people will be lost," Macron said, adding that the next two years were crucial

"We have to create a collective dynamic and we need much more from the private sector."

(With inputs from agencies)

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