President addresses climate funding gaps at World Water Summit

May 21, 2024 at 11:02 AM

President Ranil Wickremesinghe has applauded Indonesia for initiating the Global Blended Finance Alliance during the 10th World Water Forum. 

Taking to ‘X’, the President said Sri Lanka proposes using the $9.4 Billion from the Global Blended Finance fund and introducing a 10% levy on profits from global tax havens, estimated at $1.4 Trillion annually. 

He further said that enforcement would involve sanctions similar to those imposed on Russian banks when they fail to implement the levy, ensuring these funds support vital climate adaptation and mitigation projects.

President Wickremesinghe said Sri Lanka is excited to be a pioneering member of the Global Blended Financial Alliance, an initiative aimed at addressing common financial challenges faced by countries in managing water resources. 

“As we face worsening climate crises that threaten our water supplies, our commitment to both mitigation and adaptation measures has never been stronger.

“We are seeing a worrying trend: financial support from the Global North is dwindling, political will is fading post-Glasgow COP, and climate denial is on the rise in the West. 

“The results of the upcoming Global Financing Pact summit are more crucial than ever but remain uncertain, largely influenced by the upcoming US Presidential Elections and shifting global politics,” he said.

President Wickremesinghe further revealed that Organisation for Economic Co-operation and Development (OECD) projects need $6.7 Trillion by 2030 and $22 Trillion by 2058, with a $194-366 Billion annual funding gap. 

“Yet, funds are more readily directed to conflicts like in Ukraine, overshadowing the urgent need for climate resilience,” he said.

The President explained that to help close funding gaps, Sri Lanka launched the Tropical Belt Initiative at COP28, which zeroes in on protecting natural ecosystems like forests and mangroves. (Newswire)