2023’s resolutions for a reform of development finance

20 January 2023 - Foreword of the week - By : Claire ESCHALIER

2022 ended up on a consensus that the global financial architecture is no longer “fit for purpose”. In other words, the financial ecosystem created post-war to support international development – at the centre of which are the IMF and the World Bank who were joined later by other international public financial institutions – wasn’t designed to address the multiplicity of challenges the world is facing today, foremost among which climate change. Time is running, and the good news is that 2023 is set up to be a busy year with key events setting the milestones for a reform of the international financial architecture, including a Paris Summit in June. The year will close at COP 28, where we will officially take stock of current achievements.

 

As we prepare to face hard evidence that too little is being done too slowly, let’s use the positive spirit of January to outline what we would like to see in the next chapter. Deep and concrete changes are what we hope to look back on this time next year and, as explained by Alice Pauthier in her blogpost, two areas of work appear particularly critical for a successful reform. First, the new international financial system should be driven at country level, by the thorough identification of financing needs for sustainable development. Second, the focus of attention should not only be on the volumes of development finance: we should allow more consideration to its real impact on the transition of economies.

 

At I4CE, we have been and will be dedicating our efforts to contributing to these priorities: on the financial end, by supporting the debate on how to maximise the impact of public development banks; and on the economic end, by developing methodologies and tools to help countries assess their financing needs and pilot the transition. You’ll find out some more about these activities going through our newsletter.

 

Read the newsletter

I4CE Contacts
Claire ESCHALIER
Claire ESCHALIER
Team Lead – Development finance Email
To learn more
  • 12/01/2023 Foreword of the week
    COP28 : It’s money time !

    COP28 in Dubai kicks off amidst a worrying climate backdrop. For the first time, the threshold of a 2°C temperature rise compared to the pre-industrial era was exceeded in one day. In addition, a report published by the UN this week warns that current policies are placing the planet on a warming trajectory of 2.9°C, and that the chances of maintaining the increase at +1.5°C are now of only 14%. The results of the first Global Stocktake, a worldwide assessment of the actions taken by countries since the Paris Agreement, will be published at the COP and should confirm the urgent need to change the trajectory of greenhouse gas emissions. 

  • 11/29/2023 Blog post
    Climate finance: multiplying the numbers will not solve the equation alone

    Much of the discussions at COP28 will focus on the 100 billion USD/year target decided at Copenhagen to support climate investments in the Global South, and on the new climate finance goal set to replace it. But, whilst keeping our eyes on the volumes laid on the table, we also need to look more into the impact of every dollar spent. Identifying and building on the value added of every actor in the economy is essential to avoid overlaps and maximise synergies. Three types of actors have a pivotal role to play in the paradigm shift: governments, public financial institutions and private financial institutions.

  • 10/30/2023 Blog post
    Response to GFANZ APAC on financing the early retirement of coal-fired power plants

    NewClimate Institute and the Institute for Climate Economics (I4CE) submitted a response to a public consultation on the Glasgow Financial Alliance for Net Zero’s proposed set of voluntary guidance for financing the early retirement of coal-fired power plants in Asia-Pacific. This blog post highlights key points from our submission. Preventing the worst impacts of the climate crisis, particularly for the most vulnerable, requires halting coal-fired power plants (CFPPs) in the pipeline and retiring a substantial portion of the existing global coal fleet before the end of their technical lifetime. While countries have committed to phase out unabated coal in the Glasgow Climate Pact, 350 GW of new capacity is proposed globally with an additional 192 GW under construction.

See all publications
Press contact Amélie FRITZ Head of Communication and press relations Email
Subscribe to our mailing list :
I register !
Subscribe to our newsletter
Once a week, receive all the information on climate economics
I register !
Fermer