Lula da Silva urges the creation of a new financial model for development and the climate crisis.

Rio de Janeiro, July 4 (EFE) - Brazilian President Luiz Inácio Lula da Silva called Friday in Rio de Janeiro for the creation of a new financing model to address the challenges of sustainable development and the climate crisis, during the opening of the tenth meeting of the New Development Bank (NDB).

"Either we discuss a new form of financing to help developing countries, and especially the poorest countries in Africa and Latin America (...) or they will remain poor for more than a century," Lula said in his speech.

The president emphasized that the NDB, created during the 2014 Fortaleza Summit in the South American country, has proven to be an inclusive multilateral financial forum that can advance this work.

"Its main role is to create new financing formats," he stated.

A more independent financial system

In his speech, Lula emphasized the need to move toward a more independent financial system and stressed that strengthening the use of local currencies has become a "highlighted" feature of the NDB.

"It is essential that member countries use their own currencies in financial operations, as we are already doing with 31% of the projects financed by the bank," stated the Brazilian president, who emphasizes that this is a characteristic that differentiates the NDB from other financial institutions.

At the opening of the event, Lula also emphasized the need to create new financing mechanisms to address the climate crisis and noted that the commitment made at the 2009 Copenhagen Summit, which called for countries to donate $100 billion annually to the poorest countries to address climate change, "has not yet been achieved."

Support for indigenous populations

The Brazilian president has also expressed his concern for countries with tropical forests, such as the Congo, Indonesia, and the Amazon, and has reiterated the need to support the indigenous populations and communities that protect these resources.

In this regard, NDB President Dilma Rousseff stated that climate finance, "more than a simple promise, must be a concrete mechanism for adaptation, energy transition, and resilience," especially in the countries most affected by extreme weather events.

Rousseff has emphasized that the NDB "must be at the forefront" of this effort, increasing investment in green projects.

The NDB, better known as the BRICS bank, is a multilateral financial institution created by the bloc's founding countries (Brazil, Russia, India, China, and South Africa) to finance infrastructure and sustainable development projects in member countries and other emerging economies.