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Biggest Win Yet at COP27? Calls to Reform Multilateral Lenders

While everyone is focused on fossil-fuel language at COP27, the biggest win yet may be 200 countries calling for a reform of global financial architecture.

A COP27 golden tile installation in the grounds of the Green Zone area in Sharm El Sheikh.

A COP27 golden tile installation in the grounds of the Green Zone area in Sharm El Sheikh.

Photographer: Islam Safwat/Bloomberg

For the first time, a draft political decision published at the COP climate talks calls on multilateral development banks (MDBs) and international financial institutions (IFIs) to be reformed and align their spending with climate goals. That’s a big win, said Laurence Tubiana, chief executive officer of the European Climate Foundation.

“The moment is right,” she said. “Climate impacts are beginning to be understood as a macroeconomic risk.”