Shafaq News/ The two-day summit for a "New Global Financial Pact" hosted in Paris concluded on Friday, achieving some initiatives aimed at assisting poor countries but falling short of significant progress in reshaping the global financial system to address climate concerns.

Leaders from around the world gathered at the summit. They expressed concerns over the aging business models of the World Bank and the International Monetary Fund in the face of challenges like climate change and mounting debt burdens in developing nations after the COVID-19 pandemic.

According to a statement obtained by Reuters, the summit's participants expect multilateral development banks to increase lending by $200 billion over the next decade by implementing tighter balance sheet management and assuming more significant risks. The statement also indicated that additional capital may be required for multilateral development banks if these reforms are enacted.

The United States, as the most significant contributor to the International Monetary Fund and the World Bank, plays a pivotal role in shaping the global financial landscape.

After the summit, French President Emmanuel Macron declared a "complete consensus" on a "profound reform" of the global financial system.

On Friday, Macron convened another meeting with around forty heads of state and government, including Brazilian President Luiz Inacio Lula da Silva and Saudi Crown Prince Mohammed bin Salman, to translate proposals from the last Climate Conference of the Parties (COP 27) into action. Some announcements were made during the meeting, held at the Palais Brunniard, the former headquarters of the Paris Stock Exchange. However, some participants criticized the location and space limitations of the venue.

As part of its agreements with vulnerable countries, the World Bank intends to introduce a new clause enabling the suspension of debt repayments in the event of a disaster. Barbados Prime Minister Mia Motley, who has been advocating for such provisions, expressed her satisfaction, stating that "almost everyone agreed that the provisions for natural disasters were right."

The International "Climate Action Network" criticized the summit for merely repackaging old ideas and raised concerns about suspending payments instead of outright debt cancellation.

Macron expressed his support for an international tax on shipping, citing it as a non-taxable sector. However, achieving consensus on this contentious issue remains a challenge. Macron warned, "If China, the United States, and several major European countries that also own significant companies in this field do not join us, we will impose a tax without an impact."

In a lengthy speech, Brazilian President Luiz Inácio Lula da Silva criticized the lack of international action against climate change and social inequalities while also condemning Western protectionism.

During the summit, rich nations finalized a delayed $100 billion climate finance pledge to support developing countries and established a biodiversity and forest protection fund. However, the pledge falls short of the actual needs of poor countries and has fueled mistrust in broader climate negotiations.

Although the summit made progress in certain areas, such as providing $2.5 billion to Senegal to reduce its reliance on fossil fuels and reducing Zambia's debt, concerns were raised by Harjit Singh of the Climate Action Network, who believed that the summit relied too heavily on private investment and overlooked the vital role that public finances should play.