Governor Mohamed Munawwar has stated that achieving the renewable energy target requires around 1.3 billion dollars to upgrade power infrastructure.

Speaking at the World Bank and International Monetary Fund (IMF) annual meeting in Washington, Munawwar stated that small countries like the Maldives, are on the front lines of climate change. As such he noted that the Maldives aims to have 33% of its electricity from renewable sources by 2028.

"This transition will build climate resilience and deliver significant fiscal and foreign exchange savings. Achieving the target requires around 1.3 billion dollars to upgrade power infrastructure, of which only 13% has been pledged by donors so far," he highlighted.

Munawwar further stressed that Small Island Developing States (SIDS) like the Maldives call on international financial institutions to provide easier and affordable climate finance for adaptation and mitigation on the principles of a just energy transition. While the IMF’s Resilience and Sustainability Fund and the World Bank’s record 42.6 billion dollars in fiscal year 2024 in climate finance are commendable. More is needed, especially for climate vulnerable SIDS.

In his speech, the governor also highlighted that over two-thirds of emerging markets and developing economies are at high risk of debt distress. While the Global Sovereign Debt Roundtable has encouraged collaboration, more action is needed. Debt sustainability analysis must better account for country context, and the ongoing review of the Debt Sustainability Framework for Low-Income Countries should look at the specific needs of SIDS.

He further called on the IMF, World Bank, and MDBs to take bold steps to support countries in debt distress. MDBs can also create tools like debt-for-climate swaps, exchanging debt relief for climate adaptation investments.