Statement of the Climate Action in Financial Institutions Initiative in San Francisco

The 4th International Conference on Financing for Development (FFD4) in Seville represents a milestone for delivering on development (including climate action) goals, a decade after the adoption of the Sustainable Development Goals and the Paris Agreement. The “Seville Commitment” was adopted on June 30th, albeit in the absence of the United States – demonstrating that widespread support remains for a comprehensive package to finance development. However, the outcome also embodies the growing chasm between high-level commitments and the reality of financing for development and climate action on the ground. Recent research by I4CE attempts to bridge this gap on two crucial issues. 

This report aims to support better use of financial intermediation by public development banks (PDBs) providing international development finance, helping PDBs work better together as a system, with a common understanding of where they contribute the most to low-emissions and climate-resilient development. It mainly focuses on financial intermediation through on-lending to public (government-owned) financial institutions in developing countries.

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.