Colombia сalls for global financial reforms to tackle climate change

At the COP29 climate conference, a representative from Colombia emphasized the necessity of creating a new financial approach for a successful transition from a fossil fuel-based economy, according to Report

"The transition cannot continue on the same path as it is now, as economies dependent on fossil fuels require a transitional regime," Maria Susana Muhamad, Colombia's Minister of Environment and Sustainable Development, said during a high-level session at COP29.

Muhamad added that this transition is particularly challenging for Colombia due to fiscal constraints and the debt incurred following the COVID-19 pandemic.

The minister also drew attention to the high risks and costs of debt servicing, which hinder access to investments. "How are we going to transition the entire economy with such high risks and high cost of capital?" she questioned.

"We cannot take on more debt," Muhamad declared, stressing the need for changes in financial institutions and conditions to achieve the goals of the Paris Agreement. Colombia expects COP29 to take the first step towards creating a substantial financial package to support developing countries and alleviate their debt burden. The minister called for the creation of a "financial pact for life" that will ensure long-term access to financing for the climate transition.