No country should have to choose between fighting poverty and protecting the planet, French President Emmanuel Macron said Thursday at the start of the Summit for a New Global Financial Pact in Paris.

International Financial Reform a Key Focus

International financial reform will be high on the agenda of the two-day summit, beginning in Paris on Thursday with about 50 heads of state attending, along with representatives of international organizations and civil society.

Focusing on Helping Vulnerable Developing Countries

The event will specifically focus on helping the most vulnerable developing countries tackle poverty and climate change.

Increased Funding and Public Finances Overhaul Needed

Addressing these challenges will take increased private funding and a public finances overhaul, stressed Macron, who had revealed plans to host the summit after COP27 international climate conference in November 2022.

Leaders’ Urgent Commitment to Combating Poverty and Inequality

Last week, in a joint article in the French daily Le Monde, Macron and 13 other political leaders, including U.S. President Joe Biden, emphasized their urgent commitment to combating poverty and inequality.

Concerns Over Climate Change’s Disproportionate Effect on Vulnerable Populations

They expressed concerns that climate change will lead to more frequent and devastating disasters, disproportionately affecting the world’s poorest and most vulnerable populations.

IMF Reaches Target of Reallocating Funds to Battle Climate Change and Poverty

The head of the International Monetary Fund (IMF) said Thursday that rich countries had met a target of reallocating $100 billion of funds from the institution to battle climate change and poverty in developing countries.

Additional Funding Still Needed

Ahead of the summit, the IMF still needed another $40 billion to hit the target, she said.

Recycling Special Drawing Rights for Vulnerable Economies

The plan, first announced in 2019, was for wealthier countries to recycle $100 billion in IMF special drawing rights (SDRs) for vulnerable economies.

Need for Global Marshall Plan and Financial Transaction Tax

The world needs a global “Marshall Plan” to combat climate change and a tax on financial transactions could help fund the fight, Colombia’s President Gustavo Petro meanwhile told world leaders at the summit.

Expanding Carbon Pricing to Support Energy Transition

European Commission President Ursula von der Leyen, on the other hand, said the international community must look at ways of introducing global carbon pricing to accelerate the transition to a lower-carbon economy.

Von der Leyen also said that the world needed to expand the greenhouse gas emissions that are covered by a carbon price to support the energy transition, calling the current percentage of emissions covered by a price “almost nothing.”