Finance Minister Dr. Prakasharan Mahat has said that the developed countries should follow the commitments made in addressing the problem of climate change.
He said that in order to face the challenges of developing countries like Nepal, which have not played a significant role in creating the problem of climate change, the commitments made by the developed and major carbon emitting economies should be fully followed.
In the board meeting of the Asian Infrastructure Investment Bank, he said that the country is highly affected by climate change and the problems and challenges caused by it.
Finance Minister Mahat drew participants' attention to the need to raise the price of carbon trading.
He called for concessional financial assistance for the development of underdeveloped countries like Nepal.
Delivering the keynote address at the Governors' Business Round Table at the Asian Infrastructure Investment Bank's Board of Governors Meeting, Mahat said that concessional financial assistance would mean a lot to an underdeveloped country like Nepal.
He also urged all member states to agree to Nepal's proposal for a separate concessional mechanism for this purpose.
He emphasized on increasing climate finance and related facilities for Nepal and other developing countries that do not play a significant role in carbon emissions but are experiencing the extreme impacts and consequences of climate change.
Finance Minister Mahat said that the stability of the global economy, accelerating the path to zero carbon emissions and economic development of low and middle income countries, poverty alleviation and access to financial resources for the quality of life of citizens are three major challenges.
He said the role of multilateral development banks, including the Asian Infrastructure Investment Bank (AIIB), will be important in addressing this challenge.
He said that AIIB and other multilateral development banks should contribute to economic revitalization and development, job creation, green infrastructure development, and expanding access to financial resources for low-income countries.
He said that AIIB and other multilateral development banks can significantly contribute to technical and institutional capacity building, climate-related disaster management and other social security.
He said that a lot of financial resources are needed for the infrastructure development of the developing member countries.
In this regard, Finance Minister Mahat said that the existing financial assistance mechanism and equipment are not sufficient and mentioned that there is a need for innovation in this field.
He stressed that the Bank should use innovative and creative tools such as public-private partnerships, green bonds, mixed financing, etc. to prevent the shortage of financial resources for developing countries..
Finance Minister Mahat participated as a panelist in a discussion focused on addressing the challenges posed by climate change and expected climate finance mobilization. The event took place during the eighth annual meeting of AIAAB.