“We need a just, eco-friendly transformation that encourages sustainable development, reduces poverty and which leaves nobody to fend for themselves,” said Federal Chancellor Olaf Scholz. He continued that this was why it had been important to accept joint responsibility and to discuss solutions at the Summit for a New Global Financing Pact in Paris.

The “Summit for a New Global Financing Pact” took place in Paris on 22 and 23 June and was hosted by the French President Emmanuel Macron. Among the participants of the Summit were several heads of state, as well as representatives of international organisations, civil society and the financial sector.

Accepting joint responsibility

The Federal Government believes that it is important not to leave the countries of the Global South alone in handling major challenges. We have a shared responsibility for issues such as hunger, poverty and the consequences of anthropogenic climate change. This is why we must tackle those challenges as an international community of states.

Germany has given extensive assurances in the past, in particular in relation to climate financing. “We will continue in this vein and we feel committed to the assurances we made,” Scholz affirmed, adding that it was also clear that viable global cooperation would be essential for the future.

A win-win situation for everyone

There are three points the Federal Government considers to be especially important:

1. We must reform our international financial institutions, in particular the World Bank and multilateral development banks.

2. We must create viable opportunities for development. This includes cooperation in the fight against climate change through Just Energy Transition Partnerships, such as those that already exist in Senegal, South Africa and India. Last year Germany established the Global Shield, a tool designed to help countries deal with natural disasters. In addition, Germany founded an international, open and cooperative Climate Club for more intensive collaboration with regard to climate targets.

3. We must promote local value creation in developing and emerging countries. These countries must benefit more from their own resources. Scholz stressed that “this will also help to create local jobs  and that is a key contribution,” and that the energy transition and the expansion of wind and solar energy offered great opportunities in this respect. We also need to help make sure that fertiliser, for example, can be produced all over the world, rather than in just a few places.

“This would also make the global economy more resilient on the whole and give rise to broader supply chain structures: it is a win-win situation for everyone,” the Federal Chancellor concluded.