I4CE takes action in Tunisia to raise awareness in the banking sector

Financial intermediation, understood as the indirect financing of beneficiaries through on-lending, equity investments, debt security, or guarantees to local financial institutions, has gained significant momentum over recent years. It is increasingly seen as a promising avenue to mobilise finance at scale, using concessional finance to leverage additional investments through financial intermediaries (FIs). Access to concessional finance can strongly motivate FIs to engage in climate-related investments, especially when they otherwise face financial constraints. With this additional finance, FIs can in turn fund local beneficiaries, including local financial institutions, through smaller size financial products.

Next week, representatives of public development banks and their stakeholders will gather in Cape Town for the 5th Finance in Common Summit (FiCS), to discuss how public development banks can align all their activities with the Sustainable Development Goals, the Paris Agreement, and the Global Biodiversity Framework. As the global network of public development banks, Finance in Common represents about 10% of total global development investments each year, which must all align with sustainable development pathways. This year, the discussions at FiCS will take place while South Africa hosts the first meeting of the G20 Finance Ministers and Central Bank Governors, with a focus on solidarity, equality, and sustainability.

2025 is a pivotal year for the interlocking global agendas of climate and sustainable development, highlighted by major convenings such as the 5th Finance in Common Summit (FiCS), the 4th International Conference on Financing for Development (FfD4), the G20 Summit under South Africa’s presidency, and the UNFCCC COP30. Public development banks (PDBs) will feature prominently across these events, given their integral role in implementing these critical agendas through financial support and stakeholder mobilization.