On the first day of the conference, International Monetary Fund (IMF) Managing Director Kristalina Georgieva announced that rich countries have pledged to allocate $100 billion from a credit facility of the organization (known as "special drawing rights") to support developing countries in responding to climate change and reducing poverty.
Meanwhile, World Bank President Ajay Banga said the financial institution will introduce a mechanism to "suspend" debt obligations for countries affected by the economic crisis. The purpose of this mechanism is to help such countries "focus on dealing with important issues at hand" and "not worry about debt repayment".
Opening session of the Summit on the New Global Financial Compact. Photo: VNA
As the host country, France praised the conference as an opportunity for leaders to learn from experience in building consensus. However, leaders all felt the difficulty in achieving concrete results after the two-day conference in the context of the world's stagnant economies due to the impact of consecutive crises in recent years.
The conference comes amid financial challenges that are growing in scale and severity, while countries face warnings that whether the world can limit global warming to acceptable levels depends on the ability of developing countries to increase large-scale investment in clean energy.
Annual investment in clean energy alone in developing countries will need to rise to nearly $2 trillion over the next decade, the International Energy Agency estimated this week, needed to meet the goal of limiting global warming to well below 2 degrees Celsius above pre-industrial levels and, if possible, to 1.5 degrees Celsius, as set out in the 2015 Paris Agreement on climate change.
Opening in Paris on the morning of June 22 (local time), the conference was attended by over 100 senior leaders of countries, including 40 heads of state, many government leaders and ministers, leaders of important international organizations such as the United Nations (UN), WB, IMF and many representatives of the business community, investment funds and socio- political organizations.
According to VNA/Tin Tuc Newspaper
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