Global Development Banks Unite to Strengthen Impact Through G20-Endorsed Roadmap

Global Development Banks Unite to Strengthen Impact Through G20-Endorsed Roadmap

(IN BRIEF) The leaders of 10 multilateral development banks (MDBs) welcomed the G20’s endorsement of a roadmap aimed at reforming MDBs to address global challenges, support the Sustainable Development Goals, and enhance climate action. Key achievements in 2023 include increasing lending capacity by $400 billion over a decade, raising climate finance to record levels of $75 billion for low- and middle-income countries, and doubling private finance mobilization to $101 billion. The roadmap emphasizes collaboration among MDBs, governments, and private entities, while new tools like a co-financing portal and enhanced credit risk insights aim to boost efficiency and partnerships. MDBs will advance reforms in line with the G20 plan, with progress to be tracked under South Africa’s 2025 G20 presidency.

(PRESS RELEASE) LUXEMBOURG, 21-Nov-2024 — /EuropaWire/ — The leaders of 10 multilateral development banks (MDBs) have welcomed the G20’s endorsement of the “Roadmap towards Better, Bigger, and More Effective MDBs.” This initiative outlines a strategic framework for reforming MDBs to better address global and regional challenges, accelerate progress toward the Sustainable Development Goals (SDGs) and the Paris Agreement, and drive job creation and economic opportunities.

Building on a call from G20 leaders in New Delhi in 2023, the Roadmap was a key priority of Brazil’s G20 presidency. It provides recommendations to enhance MDB financing capacity and impact while encouraging the institutions to function more cohesively as a system. This includes collaboration with governments, development banks at all levels, and the private sector.

The Heads of MDBs Group worked closely with Brazil’s G20 presidency, leveraging the MDBs’ 2024 Viewpoint Note, which outlined 16 priority deliverables, 14 of which were integrated into the Roadmap. These efforts culminated in milestones including increased climate financing, strengthened private sector mobilization, and enhanced procurement harmonization.

Notable 2023 Accomplishments Include:

• Raising lending headroom by $400 billion over the next decade.
• Achieving record-high MDB climate finance lending of $75 billion for low- and middle-income countries and $50 billion for high-income nations.
• Doubling mobilized private finance to $101 billion from 2022 levels.
• Projecting a collective climate financing target of $120 billion annually by 2030 for low- and middle-income countries.
• Launching a co-financing portal featuring 125 projects valued at over $95 billion to increase partnership opportunities.
• Publishing enhanced credit risk insights for investors through the Global Emerging Markets Risk Database (GEMs) Consortium.
• Scaling local currency financing, issuing hybrid capital offerings, and advancing SDR channeling proposals.

The MDBs also introduced a unified approach to measuring climate results and expanded procurement harmonization efforts to reduce costs and improve supply chain sustainability.

Looking ahead, MDBs will continue implementing reforms aligned with the G20 Roadmap, engaging with South Africa’s G20 presidency in 2025 to monitor progress.

The Heads of MDBs Group also announced that the Council of Europe Development Bank will succeed the Inter-American Development Bank as Chair on December 2, 2024. Outgoing Chair Ilan Goldfajn was commended for his leadership and dedication to advancing the group’s objectives.

For details on progress related to the MDB Viewpoint Note, visit the implementation table.

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SOURCE: European Investment Bank