Abu dhabi: The BRICS technical finance meeting, which gathered deputy ministers and central bank representatives, concluded with a significant move towards establishing a multilateral financial guarantee mechanism. This initiative is set to support sustainable development projects, focusing on energy transition, renewable energy expansion, and the enhancement of resilient infrastructure.
According to Emirates News Agency, Tatiana Rosito, the Secretary for International Affairs at the Ministry of Finance in Brazil, explained that a joint session on COP30 climate financing was held to review the agenda developed over the past six months. A technical report has been prepared to help align the positions of finance ministries and central banks, aiming to contribute to the Leaders' Declaration.
Rosito detailed that the agenda includes specific instruments like BRICS guarantees, which are intended to drive investment in climate-related initiatives. These initiatives range from resilient infrastructure and nature-based solutions to adaptation and the energy transition.
The mechanism is designed to increase resource availability for BRICS countries and lower capital costs by reducing financial risk. The model is comparable to the World Bank's Multilateral Investment Guarantee Agency (MIGA), which provides credit guarantees to encourage investment in developing countries.