RIYADH — The Minister of Finance, Mohammed Al-Jadaan asserted that given the large and growing gap in access to energy, the world needs all sources of energy to support economic growth and sustainable development.

He made this assertion during his participation in the Board of Governors of the Asian Infrastructure Investment Bank (AIIB) Annual meeting, held virtually on Tuesday.

He pointed out that climate finance must be focused on tackling net GHG emissions rather than targeting the source of energy.

Al-Jadaan indicated how important it is for the AIIB to coalesce its efforts with those of the other institutions and enterprises in facilitating the development, deployment and financing of technologies, while encouraging the Bank to take advantage of the Circular Carbon Economy (CCE) approach that enable the capture, storage, and re-use of carbon.

Al-Jadaan added that there has been a temporary decline in the financing of infrastructure, given that attention is being turned to the immediate priorities imposed by the pandemic.

Al-Jadaan stated, “As the crisis recedes, we should expect a spurt in demand, given the large infrastructure deficits that predated the COVID and have likely grown since.”

He continued by pointing out: “AIIB needs to be well prepared to play its part in meeting that demand. Special focus should be on enhancing access to reliable, affordable and sustainable energy, given the recent trend of rising energy prices around the world.”

Al-Jadaan encouraged the AIIB to explore the cooperation areas under the Saudi efforts in fighting climate change, including through the Saudi Green Initiative and the Middle East Green Summit, where Saudi Arabia aims to reaching net-zero emission by 2060.

The minister clarified that fiscal constraints and the debt burden are being felt by some, if not most, members. These constraints and burden require a much greater contribution by the private sector in the financing of infrastructure. Private capital mobilization is going to be critical in 2022 and beyond.

It is noteworthy that the Kingdom is a founding member of the Asian Infrastructure Investment Bank. AIIB aims to promote economic development and improve the connectivity of infrastructure in Asia and beyond through investing in the infrastructure that reflects sustainability and innovation.

This is in addition to strengthening regional cooperation and partnership in addressing development challenges by working in a framework of close cooperation with all the multilateral development institutions. — SPA