Mr Ahmed Mazin, Minister of State for Finance, Maldives joined the INFF Report: ‘Making finance work for people and planet’ launch event hosted by the Government of Spain and INFF Facility during the Financing for Development (FfD) Forum 2024 in New York on 24th April 2024.
The Minister highlighted how Maldives, one of the Small Island Developing States (SIDS) facing extreme weather conditions and climate change, utilizes its INFF in development planning. Through its gender-responsive climate finance strategy, the country aims to mobilize resources for national priorities facilitating the execution of development and climate priorities. They have implemented reforms to enhance transparency in the financial systems, attract investments and develop an ESG framework that are aimed at bridging the climate finance gaps.
The full transcript of the speech is attached below:
Thank you very much for the opportunity to speak here today.
As we all know, Maldives is a nation of low-lying islands and is vulnerable to the impacts of climate change. Rise in sea levels, extreme weather events, and increase in temperatures threaten our very existence. These existential threats underscore the urgency of integrating comprehensive climate action into every aspect of our development planning.
Nearly 75% of all our national critical infrastructure lies within 100 meters of the coastline, be it an airport or public housing or a school. All infrastructure in the Maldives need to account for climate adaptation and mitigation, which incurs a disproportionately higher cost for a small country like ours, especially for a crisis not of our own making.
Needless to say, the domestic resources we generate are not sufficient to meet this disproportionate cost of adapting to climate change. But the country is trying to move the needle on climate finance by moving every penny at our disposal.
In March 2023, with the support of UNDP, we took a significant step forward by endorsing our Integrated National Financing Framework, which is INFF, as a national document.
This framework, which is the first of its kind for a small island developing state, not only links directly to our nationally determined contributions, but also embodies our commitment to sustainable and inclusive financial planning. At the recent COP 29, His Excellency President Dr. Mohamed Mouis reiterated the Maldives' unwavering commitments to combating climate change. He pledged significant national efforts towards sustainable energy, with aims to install renewable energy system that can meet 33% of the country's electricity demand within the next five years. This ambitious project requires funding of at least $600 million, highlighting the critical need for robust financial strategies and international cooperation in our climate action plans.
Our INFF outlined 16 policy priorities with 127 actions aimed at converting significant challenges into actionable opportunities. This includes transitioning away from a fossil fuel dependent economy, enhancing our resilience through sustainable investments in climate adaptation and mitigation.
Since its launch, we have prioritized areas such as fossil fuel subsidiary reforms, which have been proposed in our national budget submission to parliament. With assistance from the UNDP, we have implemented SDG budget tagging to enhance transparency in how public funds are directed towards achieving sustainable development goals.
To attract investments, particularly technologies that mitigate climate impact, we are extremely reforming our financial systems to align with global ESG principles. These reforms include the development of ESG frameworks for our sovereign, corporate, and banking sectors.
These steps are vital for our continued progress toward bridging the climate finance gaps. A critical component of our strategy is the establishment of a sustainable finance hub at the Ministry of Finance. This initiative will not only facilitate the mobilization of substantial climate finance resources, but also explore innovative financing structures like blended finance to maximize the impact of available funds
Our INFF also integrates gender consideration across its objectives, recognizing the uneven impact of climate change on the most vulnerable segments of society and ensuring that our adaptation and mitigation strategies empower all community members to participate in and benefit from our climate actions.
The Maldives is doing its part. It is a proactive approach to integrating climate consideration into our national financing framework sets a precedent for other nations, demonstrating that through unity, innovation, and resilience, sustainable development is indeed within our reach.
I wish to express my profound gratitude to the UNDP and all our development partners for their unwavering support in this ambitious endeavor. The path forward is challenging, but with continued collaboration and stronger commitments to end the climate emergency, we can ensure that the Maldives and SIDS (Small Island Developing States) will be able to adopt and mitigate against the effects of climate change. We call on development banks and our international partners to ensure that financing is available at a rate that speaks to transitional justice at the heart of the climate crisis.
Thank you.
