Maldives Governor Munawar Urges Increased Climate Finance for Vulnerable Small Island States

At the 2024 IMF and World Bank Plenary, Maldives Monetary Authority Governor Ahmed Munawar made a powerful appeal for increased and accessible climate finance to support Small Island Developing States (SIDS) grappling with the existential threat of climate change. Speaking to representatives from more than 190 countries, Munawar emphasized that while nations like the Maldives are working to transition to renewable energy, the financial gap remains vast.

The Maldives has set an ambitious target to transition 33% of its energy grid to renewable sources by 2028, a step that Governor Munawar says is necessary to build resilience against climate change. However, the estimated cost to upgrade power infrastructure in the Maldives stands at $1.3 billion, with only 13% currently pledged by international donors. Munawar highlighted this as a pressing concern, noting that the financial burden often falls heavily on small, vulnerable nations despite their limited contributions to global emissions.

Munawar praised recent initiatives, including the IMF’s Resilience and Sustainability Fund and the World Bank’s record $42.6 billion allocation to climate finance in fiscal year 2024. Yet, he cautioned that more must be done. He called on these international financial institutions to provide climate finance that is not only accessible but also affordable for small states. Governor Munawar encouraged innovative financing solutions, such as private sector involvement and climate-focused investment tools that address the specific needs of SIDS. He urged a just and equitable approach to climate finance, stressing that vulnerable nations should not be left behind in the global shift to green energy.

"To achieve resilience, we must reimagine and implement creative strategies that make climate finance accessible to those who need it most," Munawar stated. His appeal underscores the need for multilateral institutions to take decisive action to address the unique vulnerabilities faced by small island states as they contend with the front-line impacts of climate change.