How a small coalition of Gulf and African states is reshaping climate finance
A new working group is quietly drafting alternative project-finance terms that emphasise sovereign co-ownership and local content.
A working group convened by the UAE, Kenya, Egypt and Indonesia is drafting alternative project-finance terms for major climate-adaptation projects, in a quiet effort that diplomats say is gathering momentum in the run-up to the next Conference of the Parties.
The group's proposed terms would emphasise local-content requirements, sovereign co-ownership of project vehicles, and a standardised dispute-resolution mechanism. Officials briefed on the work said the goal was to create a template that mid-sized economies could use when negotiating with multilateral lenders and private financiers.
Development economists called the effort substantive but cautioned that any new template would face friction from existing creditor groupings and would require sustained political will from each participating capital.
Development economists called the effort substantive but cautioned that any new template would face friction from existing creditor groupings and would require sustained political will from each participating capital.