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ACG pledges USD 10 bn for combating drought + desertification at COP16: The Arab Coordination Group (ACG) pledged USD 10 bn to fight land degradation, desertification, and drought on the second day of the UN Convention to Combat Desertification (UNCCD COP16) taking place in Riyadh, according to a press release (pdf).
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The latest commitment brings the total pledged at COP16 so far to upwards of USD 12 bn, following Tuesday’s launch of the Riyadh Global Drought Resilience Partnership with an opening USD 150 mn commitment from Saudi Arabia that was backed by follow-on pledges of USD 1 bn apiece from the OPEC Fund and the Islamic Development Bank.
More is expected to come: “I hope this is just the beginning, and over the coming days and weeks, we see further contributions from international private and public sector partners,” Saudi’s Deputy Minister for Environment and advisor to the UNCCD COP16 Presidency Osama Faqeeha said. There is an urgent need to rally financial support for the initiative to combat drought and land degradation in the worst affected countries, with a “worrying blackhole in the funds needed,” Faqeeha said, according to a separate statement (pdf).
Still, a lot more financing is needed: Initiatives to stave off the effects of land degradation, drought, and desertification require investments of some USD 355 bn per year between 2025-2030, while projected annual investments currently stand at USD 77 bn, according to the UNCCD’s financial needs assessment report. Private sector investments account for only 6% of funding, despite forecasts suggesting that rehabilitating upwards of 1 bn hectares can generate USD 1.8 tn in returns every year.
About ACG: Established in 1975, the ACG is an alliance of four bilateral and six multilateral Arab development funds that includes the Abu Dhabi Fund for Development, Arab Bank for Economic Development in Africa, Arab Fund for Economic and Social Development, Arab Gulf Program for Development, Arab Monetary Fund, Islamic Development Bank, Kuwait Fund for Arab Economic Development, OPEC Fund for International Development, Qatar Fund for Development, and Saudi Fund for Development. ACG has fronted more than 11k development loans in upwards of 160 countries, bankrolling projects in infrastructure, healthcare, and other sectors.
