COP27: A new journey for Development banks
In 2022, the G20 raised a key question: are development banks well equipped to deliver their mandate and lead the way to a more sustainable development, in a world faced by multiple crises? Multilateral development banks (MDBs) and development financial institutions (DFIs) business model was historically developed around project financing. But they now need to shift to supporting the transition of their counterparts: country governments, ministries, financial regulators but also national public banks, local financial institutions and companies. A new journey for development banks, and a new journey for their counterparts. Quite a challenge.
In this regard, their support for financial intermediaries will be key for the transformation of financial systems. Indeed, to increase their outreach, MDBs and DFIs channel more and more finance through those financial institutions operating in developing countries. As an example, intermediated finance represents more than 60% of total investments of IFC, the “private arm” of the World Bank. All those intermediaries, public and private, need to start their climate mainstreaming journey and progressively adopt emerging best practices.
MDBs and DFIs can and must support this journey. Some already work on it, and COP27 will be an opportunity to take stock of the situation. I4CE‘s team will be at COP27 to contribute to this stocktake, including with a series of side-events organised with the Initiative Mainstreaming Climate in Financial Institutions, for which I4CE provides the Secretariat and that gathers 53 public and private finance institutions. Don’t hesitate to join the discussion either in person or remotely – all of them will be broadcasted online – and listen to experts from I4CE, MDBs, DFIs, private finance institutions and from civil society organisations.
Supporting partner financial institutions in their journey towards Paris Agreement alignment
Date: 09 November 2022, 19:00-20:30 (Egypt time)
Location: IDFC pavilion & online
Organisers: Mainstreaming Initiative – IDFC – AFD
During this event, DFIs will announce and present new approaches to support the alignment of their financial intermediaries and discuss with them how DFIs can best support the alignment journey of partner financial institutions moving forward.
Supporting the alignment of financial institutions’ strategies and operations with the Paris Agreement objectives
Date: 16 November 2022, 16:00-20:00 (Egypt time)
Location: IDFC pavilion & online
Organisers: Mainstreaming Initiative – IDFC
The annual alignment workshop of the Mainstreaming Initiative will be another opportunity to discuss the capacity building mechanisms developed by DFIs to support the alignment of their financial intermediaries and a discussion on how they engage with national governments, central banks and regulators for the alignment of local financial markets.
Disseminating climate-related risk management practices in developing countries
Date: 09 November 2022, 11:30-12:30 (Egypt time)
Location: IDFC pavilion & online
Organisers: Mainstreaming Initiative – IDFC – AFD
While climate-related risk management practices are becoming more and more mainstream in developed countries, financial institutions in developing countries are just starting this process. On this issue as well a number of DFIs are providing assistance to their clients and will discuss with them how to best support them in this process.
How to start on the climate mainstreaming journey?
Date: 08 November 2022, 19:00-20:00 (Egypt time)
Location: IDFC pavilion & online
Organisers: Mainstreaming Initiative – IDFC
Climate mainstreaming is a comprehensive and ongoing process. However, all financial institutions can already start this journey and progress step-by-step. In this discussion, public and private banks will present their experience in mainstreaming climate in their organisation and the key milestones in this journey.
Rethinking development banking in the Decade of Delivery
Date: 14 November 2022, 14:30-17:00 (Egypt time)
Location: IDFC pavilion & online
Organisers: Mainstreaming Initiative – OECD – IDFC
Starting with presentation of latest recommendations of the OECD and the Expert Panel tasked with the Independent Review of Multilateral Development Banks’ Capital Adequacy Frameworks for the G20, this session will focus on how to address the principal limitations in DFIs’ capacity to foster transformational impact and how shareholder governments can best support them.
Development and Implementation of Long Term Strategies: The Role of Development Banks
Date: 09 November, 13:00-14:15 (Egypt time)
Location: IDFC pavilion & online
Organisers: AFD – JICA
Development banks have a major role to play in catalysing investment in support of low carbon and resilient development: the LTS process and the underlying dynamics around the formulation of development trajectories can help reveal key enabling conditions and ensure that future investments do not lead to lock-in or mal-adaptation.
DFI: The importance of reporting and evidence in supporting a Just Transition
Date: 14 November, 9:00-10:00 (Egypt time)
Location: NBI venue, green zone
Organisers: DBSA
This session will explore how integrated reporting is key to the development of a Just Transition strategy and the setting of Net Zero targets.
