President proposes ways of increasing funding for Climate Change

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President Ranil Wickremesinghe highlighted Sri Lanka's proposal that a 10% levy on the annual profits of global tax evasion assets deposited in tax havens be charged to help fund climate change.

The annual profits are estimated at US$ 1.4 trillion per annum.

The President made the comment addressing the high-level session of the 10th World Water Summit, themed “Water for Collective Prosperity,” in Bali, Indonesia.

Following is the speech delivered by President Ranil Wickremesinghe;

At the outset let me thank the President of the Republic of Indonesia,
H.E. Joko Widodo for hosting the 10th World Water Forum in Bali. The
theme ‘Water for shared prosperity’ focuses on collective
responsibility in managing water resources, the life blood of all
living beings and ecosystem services. This follows the “Sustainable
Management of Lakes” Resolution proposed by Indonesia at the UNEA-5.

During the UNEA -6 held this year, the European Union together with
Sri Lanka brought about the resolution “6/13 Effective and inclusive
solutions for strengthening water policies to achieve sustainable
development in the context of climate change, biodiversity loss and
pollution”.

I also take this opportunity to congratulate the Government of
Indonesia for taking the initiative during the G20 Presidency to
launch the Global Blended Finance Alliance. Sri Lanka expresses its
willingness to become a pioneering member.

Climate Change and water stress are two sides of the same coin. The
cumulative effects of Climate Change are the main reason for what we
see today as the water resource crisis. According to IPCC projected
climate scenarios till 2090, Sri Lanka’s dry zone will get drier and
the wet zone will get wetter in an unprecedented manner. Sea level
rise will cause salt water intrusion in coastal areas resulting in
salinization of land. I took this example from Sri Lanka while
appreciating the fact that this is what is happening all over the world.

In global terms the solution to water stress revolves around climate
mitigation and adaptation. Combating the triple planetary crisis with
specific measures aiming at water. In the Nationally Determined
Contributions water is classified under the adaptation sectors. On the
other hand, mitigation is equally important as emissions are the root
cause. Combating the threats to water resources posed by climate
change requires colossal amounts of financial resources.

The Global North has failed miserably in adhering to the commitments
to provide financial resources for Climate Change. There is a notable
lack of political will after the euphoria of the Glasgow COP was over.
Climate Change denial is gaining ground in the West.

The establishment of the Loss and Damage Fund, after a long drag, if
effectively implemented can help to bridge the gap. This is a big IF.
The Summit for a new Global Financing Pact will hopefully reach a
conclusion by September this year. Nevertheless, the final outcome
will depend on the results of the US Presidential Elections in
November.

The OECD in 2021 projected the investment for global water related
infrastructure at US $ 6.7 trillion for 2030 and US$ 22 trillion for
2058. The UNEP Report 2023 “Underfinanced - Underprepared” estimate
the under financed gap to combat climate change at US$ 194 - 366
billion per year. The Global North is willing to fund death and
destruction in the Ukraine. But there is an unwillingness to fund
measures to avoid death and destruction caused by climate change.

Since money is not coming our way in anticipated amounts and at
anticipated pace, to overcome the resource gap, Sri Lanka presented to
COP 28 the Tropical Belt Initiative. A novel concept of harnessing
commercial investments in the natural forests, mangroves, swamps,
grassland water bodies and other natural resources in the Tropical
Belt towards tackling the triple planetary crisis. The Tropical Belt
from the time of its existence has been a ‘shield’ for the whole
world. It is a catalytic accelerator of solutions to the ongoing
triple planetary crisis. Investment in the tropical belt will bring in
transformative changes to combat the triple planetary crisis.

In this context, the Initiative on Global Blended Finance will enable
the Global South to mobilise the much needed financial resources. The
US$ 9.4 billion available to commence this fund is a good example of
leveraging concessional finance. The Tropical Belt Initiative will
also benefit from this facility. In this context Sri Lanka proposes a
10% levy on the annual profits of global tax evasion assets deposited
in tax havens. The annual profits are estimated at US$ 1.4 trillion
per annum. The levy can be enforced by imposing sanctions, similar to
those imposed on Russian Banks on the Banks and the Financial
Institutes which fail to implement the levy. The monies raised by
these levies to be made available to be utilised by the Blended
Finance projects on Climate Change adaptation and mitigation.

The Global Blended Finance initiative is a supplement to the Loss and
damage funds - not an alternative. These two measures must work in
tandem. Therefore at this forum, let us express our appreciation for
the hard work done by Indonesia in proposing this Initiative at the
G20 culminating the establishment of the Alliance Secretariat.

Again, our thanks to President Joko Widodo for his contribution both
in respect to the management of water resources and for bringing
together the Global Blended Alliance.”

The World Water Summit, themed "Water for Common Prosperity," began on
May 18 in Bali, Indonesia, bringing together world leaders, experts,
academics, entrepreneurs, and policymakers. The conference aims to
unite nations in a collaborative effort to address global water issues.

Since its inception in 1997, the World Water Summit has been held
every three years, serving as a premier platform for countries
worldwide to share experiences and knowledge on best practices for
water management. The summit facilitates dialogues among stakeholders
on water, sanitation challenges, and sustainable development goals.

This year's event sees the participation of key United Nations
organizations, including the United Nations Economic and Social
Commission for Asia and the Pacific, the United Nations Food and
Agriculture Organization, the United Nations Environment Programme,
the United Nations Development Programme, the United Nations
Educational, Scientific and Cultural Organization, the United Nations
International Children's Fund, the United Nations Industrial
Development Organization, and the United Nations Climate Change
Organization.

Meanwhile, Indonesian President Joko Widodo hosted a dinner at the
Bali Cultural Park yesterday (19) for the heads of state and
representatives attending the conference. President Ranil
Wickremesinghe was also in attendance.

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