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The Training Week took place from Monday, 9 May to Friday, 13 May 2022 and gathered more than 12 member institutions and 34 climate experts to introduce the Climate Strategy and Physical Risk Assessment Toolkits
As a basis to strengthen capacities among IDFC member banks and to support the Knowledge and Sharing activity line, the IDFC Climate Facility is implementing an IDFC Climate Toolbox built toolkit-by-toolkit.
This first Istanbul Training Week introduced the first two toolkits on climate strategies and climate risk assessment were used during the first Istanbul Training Week.
Accordingly, the aim of the Training Week was to facilitate capacity building around the topics of Climate Strategies and Physical Climate Risk Assessment, by the use of toolkits to familiarise the participants during workshops and peer learning sessions. The participants learned about all aspects of a climate strategy in a development finance institution and were supported in defining a way forward on how to develop a climate strategy for their institution.
Also, the basic principles and practical application of climate risk assessments were explored and practical knowledge about how to apply them in the own work environment gained.
Besides the workshops, attractive side events such as a field visit and peer exchanges gave opportunities to share experiences and network with other IDFC members.
This Climate Facility Training Week was directed to:
- familiarise the members with all aspects of climate strategy in a development finance institution;
- support them in defining a way forward how to develop a climate strategy for their institution;
- gain an overview of climate risks assessment, its basic principles and some practical application in development finance institutions;
- apply some of the co-creation and development tools and introduced them in their own work environment;
- expand their network and exchange in a structured and facilitated manner with peers during group sessions.
AGENDA
Day 1
- Status Quo of Climate Strategy: Which elements can be included in a Climate Strategy? Where are you currently on your journey towards a Climate Strategy?
- GHG Emission Baseline: Understand the different elements and options to assess the GHG emissions baseline, discuss it among the peers and share experiences.
- Climate Targets: Expert Input on Climate Targets – Claudio Alatorre, AFD
How to define qualitative and quantitative climate targets for a financial institution?
Day 2
- Expert Input : Climate Governance by Dr. Komlanvi Moglo, BOAD – How is the climate governance implemented and structured within an organisation?
- Capacity Scan: Which human resources and technical capacities are required for the successful implementation of a Climate Strategy?
- MRE System Set-up: Which processes of monitoring (M), reporting (R), and evaluation (E) are fundamental when reporting on the targets and objectives of a Climate Strategy?
- Climate Strategy Implementation: How to mainstream a Climate Strategy in a financial institution? Which organisational set-up will facilitate a Climate Strategy implementation?
Day 3
- Climate Strategies Sharing of Experiences & Facilitated Peer Learning
- Climate Risks Assessment Sharing of Experiences & Facilitated Peer Learning
- Field Visit and Real-Life Experiences with TSKB
Day 4
- Introduction to climate risks and physical Climate Risk Assessment: How are climate risks defined? Get familiar with the concepts of risk, including hazards, exposure and vulnerability
- Initial Screening: What is needed for an initial screening? What tools are available?
- Expert Input by Xianfu Lu – Lessons learned and best practices initial and in-depth CRA
- In-depth CRA: How to identify hazards, exposure, vulnerability and risks for your project? How to develop a risk matrix?
Day 5
- Mitigation and Adaptation Measures: How to identify measures to mitigate and adapt to identified climate risks? How to evaluate these measures?
- Expert Input by Adrian Kamenitzer, Deputy Director General and Chief Risk Officer at EIB
– EIB’s climate risk assessment / management framework - Climate Risk Management Plan: How to develop a plan to manage the identified risks with mitigation and adaptation measures?
- Capacity Scan and Roadmap for the Way Forward: What capacities are needed and available in your bank to conduct a CRA? What support is needed? What are the next steps?
Review of Political Economy – ROPE
Development finance institutions (DFIs) are public financial institutions initiated and steered by governments with explicit official missions to promote public policy objectives, and public development banks (PDBs) are the main category. DFIs are experiencing a renaissance worldwide, but there is limited academic research examining their roles, operations, and effectiveness. To fill the gap, the Institute of New Structural Economics at Peking University (INSE) in collaborating with key stakeholders set up the International Research Initiative on PDBs and DFIs in 2019, sponsored by the Agence Française de Développement (AFD), the Ford Foundation, and the International Development Finance Club (IDFC). This Initiative has been coordinated by Stephany Griffith-Jones, Financial Markets Director of Initiative for Policy Dialogue at Columbia University, Régis Marodon, Special Adviser on Sustainable Finance of AFD, and Jiajun Xu, Executive Deputy Dean of INSE. It aims to create a global community of academics and practitioners in the field of PDBs & DFIs and to foster rigorous academic research and propose concrete policy recommendations for unleashing the full potential of PDBs and DFIs to the Sustainable Development Goals (SDGs).
The International Research Initiative has set up five working groups, namely, SDG-compatible investments, global development finance architecture, business model, financial regulation, and governance of DFIs. The effort in the pilot years has culminated in the production of fourteen working papers after going through two rounds of rigorous external peer reviews and disseminated in the inaugural Finance in Common Summit. The pilot effort is truly a global endeavor with the wide-ranging participation of researchers, experts and practitioners from (but not limited to) 10 Universities (Peking University, Boston University, Columbia University, University of Melbourne, Toulouse School of Economics, The London School of Economics and Political Science, George Washington University, Cass Business School, SOAS University of London, The Graduate Institute of International and Development Studies), 2 international organizations (United Nations-Department of Economic and Social Affairs, International Monetary Fund), and 7 DFIs (Asian Infrastructure Development Bank, The Brazilian Development Bank, Inter-American Development Bank, Development Bank of Minas Gerais, Asian Infrastructure Development Bank, Banque de France, French Development Agency), 8 Think tanks and research institutions (Foundation for Studies and Research on International Development, Overseas Development Institute, African Center for Economic Transformation, Institute of Research for Development, Institute for Sustainable Development and International Relations, Institute of Development Studies, ETH Zurich Center for Development and Cooperation, World Resources Institute).
Six papers were selected and published as a special issue of the renowned peer-reviewed journal, the Review of Political Economy. The open access to the special issue will last until the end of June, 2022. Furthermore, Routledge has decided to bring the whole special issue as a stand-alone book. Follow-up dissemination events will be further organized by the AFD and INSE.
You can find these papers at the following link: https://www.tandfonline.com/toc/crpe20/current
Below are key findings of each paper in the special issue:
- Matching Risks with Instruments in Development Banks
Authors: Stephany Griffith-Jones, Shari Spiegel, Jiajun Xu, Marco Carreras & Natalya Naqvi
Abstract: This paper explores how development banks should deploy appropriate financial instruments to encourage real economic risk-taking while minimizing financial engineering risks. We distinguish real economic risks from financial engineering or intermediary risks and argue that using complex financial instruments to leverage additional private financing may undermine policy, steer and lead to too much risk being taken by development banks. We then explore comparative advantages of different financial instruments such as loans, guarantees, equity, and insurance in tackling risks in normal times. We then synthesize common features of development banks’ responses to the COVID-19 crisis. Finally, we propose future research directions.
- The Global Development Banks’ Architecture
Authors: José Antonio Ocampo & Victor Ortega
Abstract: This paper looks at the role, evolution, and regional coverage of the system of multilateral and national development banks (MDBs and NDBs). It analyzes the roles that development banks should play to correct the market failures that characterize financial systems, particularly in emerging and developing countries. It concludes that MDBs should be capitalized more to better support emerging and developing countries’ recovery after the COVID-19 crisis. They should also be better aligned with the Sustainable Development Goals, and enhance their role in promoting innovation and structural transformation, and supporting climate change mitigation and adaptation. It underscores that the development banks should work as a system and that better networking between MDBs and NDBs is essential and should be systematically monitored. Finally, it points out that MDBs should support the development of strong NDBs in the regions where these institutions are underrepresented.
- Should National Development Banks be Subject to Basel III?
Authors: Ricardo Gottschalk, Lavinia B. Castro & Jiajun Xu
Abstract: We address the question: What are the potential impacts of Basel III capital framework for National Development Banks (NDBs) upon their ability to fulfil their developmental mandate? We compare three large NDBs’ experiences with Basel III implementation: Brazilian Development Bank, China Development Bank and Germany’s KfW. We find that the biggest constraint from Basel III comes less from its levels of comprehensiveness and complexity and more from tightening the levels of capital requirements and demanding better capital quality. The disincentive from using internal models and changes in the method for the calculation of operational risks may result in a substantial increase in required capital. Meanwhile, the new large exposure rule may dilute the banks’ focus on large, infrastructure projects; the high-risk weights for exposures to project finance and equity may hinder NDBs from using these financing modalities extensively to support large and complex projects and activities that involve innovation financing.
- Can Development Banks Step Up to the Challenge of Sustainable Development?
Author: Régis Marodon
Abstract: Public development banks (PDBs) — at sub-national, national, regional or international level — can cooperate and become central in the implementation of sustainable economic models. PDBs are over 500 globally. They are both providers of public funding and enablers to leverage private finance. PDBs need to acquire ‘sustainable development analytical tools’ to select operations on the basis of criteria other than purely financial ones. This paper explores why development banks can play a leading role. It proposes five recommendations for decision-makers: (1) Streamline into financing decisions the need to transition towards low-carbon and equitable economies. (2) Mobilize and encourage the private sector such that all stakeholders reach convergence on sustainable development. (3) Use development banks to channel funds for transition purposes into concrete projects and programmes consistent with international agreements signed by their governments. (4) Support emergence of a responsible demand, given that PDBs themselves are not originators of projects. (5) Build a global coalition of PDBs, for tackling global problems.
- Scaling Up Public Development Banks’ Transformative Alignment with the 2030 Agenda for Sustainable Development
Authors: Maria Alejandra Riaño, Jihane Boutaybi, Damien Barchiche & Sébastien Treyer
Abstract: Public development banks (PDBs) can accelerate SDGs implementation, by coupling their leverage capacity with systemic and cross-cutting 2030 Agenda alignment practices that catalyze real transformations in their behaviour and investments. This new research assesses how PDBs — of different sizes and geographies — have interpreted and how they include sustainable development priorities in their day-to-day discussions, processes and operations. It shows that most PDBs have the interest and willingness to take the necessary steps to mainstream SDG priorities into their strategies and operations. Nevertheless, findings suggest that both strategic and operational endeavours are at the early stages of alignment. Identified innovative practices by PDBs leading the way, should now be shared among their peers in a view of harmonization and coherence, as a crucial prerequisite to a scaled-up alignment. As for governments, shareholders and other stakeholders, they should also contribute to this alignment endeavour by an enhanced political backing and support to PDBs.
- From Global to Local: Subnational Development Banks in the Era of Sustainable Development Goals
Authors: Sergio Gusmão Suchodolski, Adauto Modesto Junior, Cinthia Helena de Oliveira Bechelaine & Leila Maria Bedeschi Costa
Abstract: Financing the implementation of the seventeen Sustainable Development Goals (SDGs) has been a development challenge since the establishment of the 2030 Agenda — especially under the unequal circumstances imposed by COVID-19. This paper aims to better inform this debate by highlighting the nature of Subnational Development Banks (SDBs) in the context of sustainable finance and how they operate within development networks. To this end, the research method addresses a comparative study among countries that stand out for the number of subnational institutions in their development systems, Brazil and Vietnam. After comparing the Brazilian and Vietnamese particularities, the paper presents concrete examples of SDBs working to connect local needs to the 2030 Agenda investments. As final conclusions, the study allows to demonstrate that, by being the last mile specialist on the ground, in different localities with particular backgrounds and contexts, SDBs could be available channels to international resources to address the financial needs of local firms and governments, improving both efficiency and effectiveness of development programs and funds. Highlighting the potential of SDBs, this analysis leaves possibilities for a future research agenda on more integrated national development finance systems focused on local impact.
Moving forward, the International Research Initiative on PDBs and DFIs will persistently build the first global database on PDBs and DFIs, and conduct the frontier and original academic research contributing to the policy dialogue in the first-ever global coalition of PDBs and DFIs on the platforms of Finance in Common Summit and beyond.
This year again IDFC had its own pavilion at COP26 !
from November 1, 2021, Scottish Event Campus (SEC) in Hall 4, PV O8
Have a look at the side events replays below
The IDFC Pavilion hosted IDFC members and partners Side Events throughout the two weeks of the COP26 to exchange on Development Finance Institutions alignment on the Paris Agreement, the nexus between Climate and Biodiversity and the role of development banks in Climate Action. Consult the full IDFC Pavilion Programme of Events.
See below the list of our Day by Day Side-Events & replays :
Monday 1st November, 2021
- Replay available : Fostering access to sustainable urban mobility through efficient low-emission transport Part I /Part II (Central American Bank for Economic Integration CABEI + Green Climate Fund GCF)
Tuesday 2nd November, 2021
- Replay available: Innovative Instruments for Green Financing Part I / Part II (Trade and Development Bank TDB + KfW)
- Replay available: Outcomes Finance in Common Summit Part I / Part II (Finance in Common Summit FICS, Agence Française de Développement AFD) including a lunch reception
- Replay available: Presentation of BOAD’s 2021-2025 Environment and Climate Finance Strategy Part I / Part II
- Replay available: IDFC – A key player for financing the transition towards low-carbon and climate-resilient development Part I / Part II (IDFC) followed by a cocktail reception
Wednesday 3rd November, 2021
- Replay available: Understanding and managing transition risk for development banks Part I / Part II (Agence Française de Développement AFD)
- Replay available: The Role of National PDBs in Financing Green Transition Part I / Part II (VEB.RF)
- Replay available: Creating fiscal resilience in the face of climate disasters: the West African Approach Part I / Part II (Banque Ouest Africaine de Développement BOAD + KfW Development Bank)
- Replay Available: Financing W-MSMEs for a Green, Resilient, and Inclusive Recovery in the Central American Region Part I / Part II (Central American Bank for Economic Integration CABEI)
Thursday 4th November, 2021
- Replay available: Southeast Asia Energy Transition Dialogue: Challenges and Opportunities to a Low Carbon Pathway in the region (Southeast Asia Energy Transition Partnership)
- Replay available: Shifting US$ 5.8 trillion of real-estate investments towards Paris-alignment – the role of development banks (Agence Française de Développement AFD/PEEB)
- IDFC closed event: IDFC Annual Meeting
- Replay available: Facilitating Energy Transition Through Sustainable Finance (VEB.RF)
Friday 5th November, 2021
- Replay available: Just do it: How to implement Paris Alignment successfully (KfW Development Bank)
- Replay available: Just transition or how to make the transition acceptable (Finance for Tomorrow)
- Replay available: Empowering action through scientific literature: highlights from IPCC 6th Assessment Report and dialogue with youth and PDBs (Agence Française de Développement AFD)
- Replay available: Facing the Effects of Climate Change and Increasing Resilience in Central America (Central American Bank for Economic Integration CABEI)
- Replay available : Official side event on UNFCCC Pavilion “Public Development Banks: maximizing their potential to boost a sustainable recovery” with IDFC CEOs and Finance in Common Secretariat
Saturday 6th November, 2021
- Replay available: Impacts at scale or the genesis of the Green Swan (Agence Française de Développement AFD + IUCN + Posaidon + Microsoft + GCF + BNP PARIBAS) (Agence Française de Développement AFD)
- Replay available: Climate/Biodiversity convergence: how to measure and increase Climate finance with biodiversity co-benefits? (Agence Française de Développement AFD+ International Fund for Agricultural Development (IFAD))
- Replay available: How to unlock barriers to scaling-up climate finance for more transformative climate finance (Agence Française de Développement AFD + Climate Policy Initiative CPI)
- Replay available: Conservation Trust Funds as Boosters for Nature Based Solutions (Legacy Landscapes Fund + KfW Development Bank)
Monday 8th November, 2021
- Replay available: Adapt’Action – Lessons learned and perspectives (Agence Française de Développement AFD)
- Replay available: Climate change an umbrella for livelihoods in coastal marine areas and island territories? (Development Bank of Latin America CAF) – can be watched also on CAF streamlink
- Replay available: Catalyzing Green Recovery (Development Bank of Latin America CAF) – can be watched also on CAF streamlink
- Replay available: How are PDBs increasing their contribution to the Adaptation Goal of the Paris Agreement? (MCI)
Tuesday 9th November, 2021
- Replay available: Gender and Climate Nexus within the Perspective of Development Banking (Industrial Development Bank of Turkey TSKB)
- Replay available: Is social the new green? Connecting climate action and social investment (Council of Europe Development Bank CEB)
- Replay available: Making Climate Finance Work in an Uncertain World (Agence Française de Développement AFD + Climate Action in Financial Institutions Initiative)
- Replay available: Assessing company transition with deep decarbonization pathways in Brazil and Mexico – lessons learned from the ACT-DDP Project (Agence Française de Développement AFD + Fonds français pour l’environnement mondial FFEM)
- Replay available: Catalyzing Climate Action in Cities (Development Bank of Latin America CAF) – can be watched also on CAF streamlink
Wednesday 10th November, 2021
- Replay available: The role of DFI’s in mobilizing resources to a net-zero objective (Brazilian Development Bank BNDES)
- Replay available: Managing Water Challenges in the developing economy: A DFI approach (Development Bank of Southern Africa DBSA)
- Replay available: Supporting Long-term Strategies: Some Lessons from Country Experiences and Implications for Development Banks (Agence Française de Développement AFD)
- Replay available: Financing our Global Health Commons
(Agence Française de Développement AFD + Center for Global Development) - Replay available: E-Mobility and Low Carbon Transportation (Development Bank of Latin America CAF) -can be watched also on CAF streamlink
Thursday 11th November, 2021
- Replay available: The role of Public Development Banks to finance the climate transition in cities (FMDV + Agence Française de Développement AFD + CDG)
- Replay available: What are the levers to boost financing of the energy transition and resilience in Africa? (Climate Chance)
- Replay available: Operationalisation of Paris Agreement (IDFC + German Watch + New Climate + I4CE + WRI)
- IDFC closed event: IDFC – Climate Tool Box – Preparing the way for Paris Alignment
- Closed Event: Paris Alignment technical workshop: Assessing the alignment of financial intermediaries (MCI)
Friday 12th November, 2021
- Replay available: IDFC Climate Facility: Presentation of CF achievements (IDFC)
- Replay available: The Amazon: Integrated actions for sustainable development (Brazilian Development Bank BNDES)
- Replay available: Implementing green budget tagging: Feedbacks on benefits and issues (Agence Française de Développement AFD)
21 October 2021
Making Finance Work for Nature: a growing momentum for IDFC Biodiversity Mainstreaming
BiodiversityAt the Finance in Common Summit 2021
IDFC recalled its actions to follow up on its 2020 engagement to foster Biodiversity Finance
Acknowledging that biodiversity is clearly a social and economic issue and that public development banks are directly concerned, IDFC announced last year during Finance in common summit (FICS) its first ever common position to harness the power of biodiversity to build a more inclusive and resilient future. This common position came from the IDFC dedicated group Making Finance work for Nature. One year later, as the momentum is growing internationally, notably with the COP15 opening session last week, what are the main outcomes of this working group?
Public Development Banks have a unique role to play in shifting financial flows towards sustainability. Taking the full measure of this role and responsibility, at FICS 2020, IDFC members committed to mitigating negative impacts and risks on biodiversity, developing positive biodiversity impacts in their investment portfolios, better assessing impacts and risks on Nature, tracking biodiversity contributions and co-benefits and actively exploring all opportunities to contribute to the objectives of the future Post-2020 Global Biodiversity Framework. Three key words can sum up this position : mobilizing, mainstreaming, implementing.
PDB’s role was also highlighted by the general declaration of all PDBs at FICS and its paragraph on biodiversity : “We stand ready to help align all financial flows with the future post-2020 Global Biodiversity Framework to be adopted at the COP15 of the Convention on Biological Diversity. Nature-based solutions, sustainable resources and land use as well as better consideration of nature-related risks will be used to promote a biodiversity-positive economy as well as climate neutrality.”
A toolbox to mainstream biodiversity
In 2021, one of IDFC’s main activities has been to develop a toolbox on the integration of biodiversity in PDB’s. If the potential of mobilizing these banks all over the world on biodiversity is to scale with the needs identified to solve the biodiversity crisis, the levels of commitment and know-how is very different among them. PDB community is heterogeneous. For most of them, it is first of all necessary to strengthen the risk management and safeguards policies, but it is also crucial to go beyond to markedly increase biodiversity co-benefits and harness Nature based Solutions.
The overall objective of this toolbox is to collect, distribute and raise awareness for tools and methods, which can help IDFC members to integrate biodiversity into their investment decisions, projects, processes and activities. It will contribute to set clear strategies and action plans on biodiversity integration in PDBs in order to increase Nature-Positive investments. Therefore, the toolbox will also provide IDFC members and other banks with the opportunity to learn from each other and disseminate good practices. The toolbox, divided in various strategic steps, is designed to summarize the key characteristics of each tool and approach, with key references and other publications. A first version of the toolbox will be ready by the end of 2021.
A successful step towards COP 26 and COP 15
IUCN World Conservation Congress held in Marseille was a crucial and successful step to relaunching the dynamic and building momentum towards COP 26 in Glasgow and COP 15 in Kunming. During the congress, IDFC organized a specific session “How can Public Development Banks support the post-2020 Global Biodiversity Framework?”. Panelists from IDFC members (KfW, CAF, BNDES, AFD) also in addition to AsDB and CBD delivered key messages on the complementary and interlinked approach needed: greening finance and financing green… Financing green through protected areas, ecosystems restoration and effective area-based conservation measures and greening finance by addressing global drivers of biodiversity decline through mainstreaming biodiversity in investments, planning, policies and decision making process.
Another key message was delivered on resource mobilization. To reverse biodiversity loss by 2030, we need to spend around US$700 bn a year (1% of annual global GDP) for the next ten years. Today, investments are about US$140 bn a year and the lion’s share comes from public funds. To fill the gap, more money, including from private sources, is crucially needed as well as the redirection or elimination of harmful subsidies (500 bn a year).
As the panel was moderated by WWF, it was also the opportunity to discuss the findings of its report on “Public development banks and biodiversity. How PDBs can align with the Post-2020 Global Biodiversity Framework” published in June 2021. This report, based on a thorough analysis of PDB’s practices includes recommendations and practical steps that PDB’s can take towards nature-positive investments. The input from WWF symbolizes the initiation of a constructive dialogue with civil society.
Towards Common principles for biodiversity finance tracking?
For the first time this year and in response to the growing international mobilization, biodiversity is included in IDFC’s Green Finance Mapping, the club’s flagship report. Out of the $ 185 billion reported in green finance in 2020, US$14 billion is reported in biodiversity finance from 7 out of the 26 IDFC members in 2020. Despite only giving an incomplete picture of IDFC members’ activity related to biodiversity, this is a first and crucial step on biodiversity reporting which will be improved and refined for future years.
Common principles for biodiversity finance tracking, as they exist for climate finance, still need to be built, in coherence with the forthcoming post 2020 Global biodiversity framework. Enhancing PDB’s capacity to report on their biodiversity investments and impacts through a science-based, reliable and transparent metric, aligned to the international biodiversity finance best standard is important. One of the expected effect is to better mobilize both public and private resources towards biodiversity-oriented objectives at new scales. Helping to build these common principles, along with OECD and CBD, is therefore an ambitious but inspiring challenge for the PDBs coalition..
Risk disclosures: a Development Finance Hub for TNFD
The new Taskforce on Nature-related Financial Disclosures (TNFD) held its first plenary in Paris in October 2021. TNFD’s goal is to provide a universal disclosure framework useful to all finance institutions, be they North- or South-based, private or public.
A Development Finance Hub convene by AFD within TNFD’s secretariat in coordination with IDFC and FiCS will coordinate the contributions of the global public development finance into the forthcoming disclosure framework through sectorial and strategic input and outreach.
The Dev Hub will promote a better understanding of biodiversity related risks and will bring to the taskforce PDBs’ experience in reporting and assessing impact, safeguards, transparency, innovative financial mechanisms and green standards. Conversely, TNFD will help PDBs to strengthen disclosures on biodiversity-related risks and impacts.
Net Zero & Nature Positive
Climate change and biodiversity loss are two sides of the same coin. Reaching holistic solutions for the planet implies to further explore and articulate the synergies between biodiversity and climate change. The IDFC working group aims to deepen and operationalize this convergence, notably by implementing nature-based solutions and share tools and methodology. Our economies can not become net zero without being nature positive.
Biodiversity mainstreaming and financing are gaining traction within the PDB community (through tools, biodiversity finance tracking, assessing risks, operationalizing climate and biodiversity convergence) – which the FiCS helped to bring to light, en route for COP15 and the post-2020 Global Biodiversity Framework.
18 October 2021
PDBS are moving forward on the Alignment with the Paris Agreement on the way to COP 26
ClimateOn the eve of the second edition of the Finance in Common Summit (FICS) & on the way COP26:
IDFC launched its Green & Climate Finance Mapping 2020 & Promote its operational framework to align with Paris Agreement
Agence Française de Développement (AFD) & the European Investement Bank (EIB), along with their IDFC partners , the CDC Group, the European Development Finance Institutions (EDFIs) and the Multilateral Development Banks (MDBs), met online on October 18th for the “On the way to FICS 2021 and COP26” Finance in Common event.
The FICS satellite event was organized to contribute to a successful COP26 in November and take stock of the work of the Public Development Banks (PDBs) on Paris Alignment. The first Summit, in November 2020, gathered for the first time all PDBs in the world and other key stakeholders (governments, central banks, private sector, civil society, think tanks, etc.). In a joint declaration, they committed to align their financial power, representing 10% of global investments, with the Paris Agreement. What progress has been made, one year later?
IDFC publishes Green and Climate Finance Mapping 2020 and promotes its operational framework to align with the Paris agreement
The IDFC published the “Green and Climate Finance Mapping 2020” key figures, i.e. the financing carried out in 2020 by IFDC members.
- More than US$1 trillion committed to green finance since 2015 – overcoming the initial commitment of reaching this threshold by 2025 – including US$185 billion in 2020
- Adaptation projects accounted for US$27.4 billion, up 42% from 2019 and x5 since 2016
- US$14 billion was committed on biodiversity in 2020. Biodiversity finance is mentioned for the first time in the Green and Climate Finance Mapping.
IDFC published this year an operational framework developed by two independent think tanks, the New Climate Institute (NCI) and the Institute for Climate Economics (I4CE). This framework provides clear and practical guidance on how IDFC members – and the financial community at large – can reach a better alignment of their strategies, programs and operations with the requirements of the Paris Agreement.
Watch the replay of the Event
Read the full FICS Event Brief
Update of the 2015 “Common Principles for Climate Mitigation Finance Tracking” to a new version fit for 2021
Since 2015, Multilateral Development Banks (MDBs) and IDFC members are using jointly developed Common Principles for Climate Mitigation Finance Tracking for guiding their common understanding on what can be counted as mitigation finance. These principles have been updated now and are published today.
The revision of the Common Principles involves an enhanced ambition for reducing greenhouse gas emissions, taking into account new mitigation activities required to meet the goals of the Paris Agreement and excluding activities that, while reducing greenhouse gas emissions in the short term, may maintain highly emissive technologies for several more years, thereby undermining the long-term temperature goal.
The updated principles set more ambitious standards, requiring for instance transitional activities to “comply with high performance country- or sector-specific standards, benchmarks or thresholds for GHG emissions or emission-intensity that significantly exceed expected performance in a sector or activity”.
IDFC members in Latin America & Africa are fostering their alignment with the Paris Agreement Objectives
The CAF (Corporación Andina de Fomento) wants to become the green bank of Latin America
« From CAF we put forward an agenda to become the green bank of Latin America, which is based on aligning economic sectors to draw guidelines that redirect their planning framework towards social responsibility and environmental sustainability. Under this approach, together with allies like the members of the IDFC, we seek to generate a competitive financial offer as well as technical solutions that will allow Latin America to become a prominent player in global climate action »
Sergio Díaz-Granados, Executive President of CAF – Development Bank of Latin America
The DBSA has developed new frameworks to align with the Paris Agreement
- The Development Bank of Southern Africa(DBSA) developed its Climate Change Policy Framework to set specific targets for financial flows into mitigation and adaptation projects and programs with the view of enhancing alignment with the Paris Agreement.
- Recently, an Integrated Just Transition Investment Framework (which incorporated an Integrated Energy Sector Investment Strategy) was approved by the DBSA board. The Framework document aims to curb the rise in high carbon intensive investments, address transition risk, whilst simultaneously ensuring human rights, social equity and biodiversity needs were addressed. The criteria reinforce DBSA commitment to align with the Paris Agreement.
- For several years, DBSA has pursued a range of other policy frameworks to address sustainability issues. These initiatives are now being integrated into an Integrated Sustainable framework that would also define the Bank’s net zero pathway.
AFD publishes its first TCFD report
The Taskforce on Climate Financial related Disclosure (TCFD), created in 2016 by the G20, published recommendations in 2018 aiming to improve the financial transparency of companies and institutions in addressing climate-related risks and opportunities. Today, AFD is publishing its first TCFD report around the four areas of climate reporting defined by the working group: governance, strategy, risk management and the indicators and metrics used.
“As a “100% Paris Agreement” development agency, AFD gives a central place to climate-related opportunities and risks in its governance, in its dialogue with clients and partners, in the choice of operations financed, and in the various indicators used to monitor the Group’s activities. This report establishes and documents this, in order to allow regular exchanges on these subjects with all our clients and partners.”
Rémy Rioux, IDFC Chairperson & Chief Executive Officer of AFD Group
At the World Conservation Congress IDFC demonstrated the crucial role of PDBs in reconciling nature with the world of finance
IDFC organized on September 4th, 2021 at the International Union for Conservation of Nature (IUCN) World Conservation Congress held in Marseille, France from 3 to 11 of September, a round table on the role of public development banks in coping with the decline of the biodiversity.
This session “How can Public Development Banks (PDBs) support the post-2020 Global Biodiversity Framework?” was organized by the IDFC in the framework of its Making Finance Work for Nature (MFW4N) Working Group, under the lead of the Agence Française de Développement (AFD) represented by its CEO, Rémy Rioux and with the participation of Gustavo Montezano, the Brazilian Bank of Development (BNDES) President, Christiane Laibach, KfW German Bank Group Member of the Board, Ingrid Van Wees, Vice-President for Finance and Risk Management at the Asian Development Bank and Elizabeth Mrema, Executive Secretary of the UN Convention on Biological Diversity.
The session was moderated by Veronique Andrieux, CEO of WWF France.
This session focused on how PDBs can support the post 2020 global biodiversity framework and the positive contribution they can have on biodiversity. It was the opportunity to unpack the ‘financing green’ concept and to illustrate how PDBs invest in Nature, beyond biodiversity conservation projects, and what are the drivers for these investments. Another important aspect to be discussed was how PDBs can support in-country enabling conditions and the policy environment to pave the way for private finance and investment in activities that generate biodiversity co-benefits but also that help to align the funds with climate-objectives.
It was also the opportunity to discuss the findings of the WWF Report on “Public development banks and biodiversity How PDBs can align with the Post-2020 Global Biodiversity Framework” published in June 2021.
“We are the bees and pollinators of the financial system”
For Rémy Rioux, CEO of the Agence Française de Développement (AFD) and IDFC Chairperson, the biodiversity crisis is not only an environmental challenge to be taken up but also an economic challenge and societal which requires a reaction from all stakeholders. And in particular those in finance.
“Fortunately, it is possible to reconcile nature and the world of finance. The latter is more and more interested in it,” observed Rémy Rioux. “And for good reason: a third of the assets of financial institutions depend on healthy ecosystems.”
In this context, the IDFC Chairperson perceives the mission of the public development bank as that of a bee: “We, the public development banks, are the bees and the pollinators of the financial system: we disseminate messages to the various players, we find the right financial instruments”
For Rémy Rioux the 500 public development banks in the world, which represent nearly 10% of investments made globally, are now expected to encourage green finance, and in particular protection of biodiversity.
“We need to turn our business in the right direction, and that assumes that all financial players speak the same language. The Taskforce on Nature-related Financial Disclosures – a working group that brings together public and private actors on the publication of nature-related risks in the financial sector – is an effective tool to achieve this.” Rémy Rioux added. “We are ready to share the financial risks”
Christiane Laibach, KfW Member of the Board, for her part insisted during this exchange on the need to encourage the private sector to join the efforts of public development banks in favor of biodiversity
“To achieve this, the sharing of experience and knowledge between players in international finance is essential, as is innovation,” said Christiane Laibach. We are prepared to share some financial risk, this is something the public sector can take on so that the private sector can get involved. ”
Backed by $ 3 billion in support for nearly 400 projects benefiting biodiversity on a global scale, KfW has for several years initiated a change in its internal operations in order to better take biodiversity into account in its activities.
“Public development banks have a major role to play in promoting the consideration of biodiversity by the financial sector”
For Gustavo Montezano, President of BNDES, the Brazilian development bank, they can intervene at three levels: “That of regulation, that of policies and that of the last mile, as close as possible to the populations”.
And the latter is the most important for him.”What we observe in Brazil,” Gustavo Montezano explained, “is that the richer the biodiversity in a place, the higher the natural capital there, the poorer the populations who live around it”
To remedy this form of incongruity, BNDES does not hesitate to work with multinationals such as Coca-Cola or Microsoft to modify the “price signal”, so that the value of the services rendered by ecosystems are better taken. into account and benefit local communities. One thing is certain: “More biodiversity must go hand in hand with more wealth.”
“Imitate what has been done for the climate”
For Ingrid Van Wees, vice-president in charge of finance and risk management at the Asian Development Bank (ADB), it is, for example, a matter of supporting countries that wish to do so in setting up a framework. strategic, technical and legal favorable to biodiversity. The objective will be to allow the realization of ambitious projects in the service of biodiversity, such as the protection, even restoration, of the wetlands located along the corridors used by migratory birds. These wetlands allow many species of protected birds to make stops, necessary for their survival.
1 July 2021
TSKB voices IDFC commitment for Gender Equality at the 2021 Generation Equality Forum
Gender
IDFC Roadmap to become an active platform on promoting Gender Equality & Women’s Empowerment towards the achievement of 2030 Agenda
The Generation Equality Forum (FGE) is the most catalytic global gathering for gender equality held in the last quarter century. Convened by UN Women and co-chaired by the Governments of France and Mexico, with the leadership and participation of youth and civil society, the Forum is a once-in-a-generation moment to advance global gender equality. The Forum was held in Paris and virtually from 30 June to 2 July 2021.
At the Generation Equality Forum “Public Development Banks Commit to Gender Equality”High Level Event, co-organized with the Agence Française de Développement (AFD), taking place on 1 July, the Turkish Industrial Development Bank (TSKB) CEO, Mrs. Ece Böru, recalled the main points of IDFC roadmap and action plan to meet the goals of the Generation Equality.
IDFC is developing a roadmap and action plan on gender equality that will establish IDFC as an active platform for promoting and advocating gender equality and women’s empowerment for the next years.
The Focus of this roadmap will be on Better access to economic opportunities, Strengthening gender mainstreaming both internally and in members’ operations and Fighting against all forms of gender-based violence. More specifically the following five priorities had been identified to structure the IDFC roadmap:
- Empowering women and girls through access to economic opportunities
- Strengthening Gender Mainstreaming into members’ operation and in priority on Climate and Biodiversity, on Infrastructure and on Education and Health;
- Fight against all forms of violence against women and girls,
- Making IDFC an active platform on promoting and advocating gender equality and women’s empowerment
- Supporting internal mainstreaming at Club members
Since 2018, IDFC has been engaging on Gender Equality, in particular through its Joint Statement on Gender Equality and Gender Equity released in 2019. These road map and action plan are the concrete implementation of this statement.
Besides 11 members confirmed their engagement by signing the Paris Development Banks Statement on gender equality and women’s empowerment signed by 26 Public Development Banks (PDBs), at the first Finance in Common Summit on 12 November 2020.
This approach will participate in the achievement of the 2030 Agenda on Sustainable Development and particularly Sustainable Development Goal 5 to empower women and girls.
4 June 2021
IDFC launches its Operationalization Framework on Aligning with the Paris Agreement
ClimateAt the occasion of the Green Swan Conference 2021
On Friday 4th June, 2021, IDFC Chairperson and Agence Française de Développement (AFD) CEO, Rémy Rioux, participated in the Green Swan Conference. The Bank for International Settlements, Bank of France, International Monetary Fund and Network for Greening the Financial System co-organized this global virtual conference on the theme “How in practice can the financial sector take immediate action against climate change-related risks?
The main objective of this conference was to showcase initiatives and particularly innovative solutions to achieve the Paris Agreement objectives. Its outcomes would serve as a global public good for other events ahead of COP26, and beyond. Rémy Rioux, voicing the involvement and activities of the Club, actively participated in the session on “How can Development Banks address the massively increased financing needs for green projects? What kind of innovative solutions can be developed?”
Watch again IDFC Chairperson intervention on the livestream
The IDFC Chairperson explained the key role of IDFC within the public development banks (PDBs) community through its work on defining sustainable investments and even pledged, in 2017 together with the Multilateral Development Banks (MDBs) to “align financial flows with the Paris Agreement.”
To go further in the perspective of COP26, and provide to the community of PDBs a clear guidance on how to reach a better alignment of strategies and operations with the requirements of the Paris Agreement, Rémy Rioux, on behalf of the IDFC Club, announced the publication of a practical framework which presents a “menu of options”, with recommendations, tools and processes designed to align any financial institutions’ vision with the goals of the Paris Agreement. This report was elaborated by the two think-tanks : the Institute for Climate Economics (I4CE) and the New Climat Institute (NCI) that provided a precious work that can offer inspirations for others institutions willing to align their operations and financing with the Paris Agreement.
Beyond, the club members are also joining efforts to contribute to the achievements of the SDGs and the objectives of the Paris Agreement, a prerequisite is to reinforce the mandate of PDBs so that they fully integrate climate and sustainable development.
This was the objective of the first edition of the Finance in Common Summit, gathering for the first time all PDBs of the world as well as their stakeholders (governments, regulators, other public and private financial institutions, academia and think tanks), to push for concrete transformation.
During the FICS, all PDBs signed a joint declaration, where they affirmed their determination to collectively shift strategies and operating modalities to contribute to the objectives of the Paris Agreement, including by working towards applying more stringent investment criteria, such as explicit policies to exit from coal financing in the perspective of COP26.
11 May 2021
FICS Event for Africa’s Green & Resilient : a new engagement to boost all African PDBs
International EventAn event under the leadership of the AfDB with the collaboration of AADFI and IDFC
On May 11th, 2021, the Finance in Common System Event was held online, under the leadership of the African Development Bank (AfDB) with the collaboration of Association of African Development Finance Institutions (AADFI) and the International Development Finance Club, in the framework of the Finance in Common Spring Meeting under the theme “Africa’s Green and Resilient Recovery : A Common Objective”
This event, in the sidelines of the Summit on Financing African Economies (SFEA), to be held in Paris on May 18th, hosted by President Macron, to gather African Leaders and institutions, as well as their key international Partners, is a unique opportunity to hear the voice of African PDBs and better understand their role in the financial architecture. The SFEA would emphasize the urgency of immediate resources for Africa’s recovery post-Covid 19 to ensure vaccine access and investment opportunities on the continent.
During the 11th of May event, opened and closed by Rémy Rioux, IDFC Chairperson and Agence francaise de développement (AFD) CEO and Dr. Akinwumi Adesina, AfDB President, African PDBs and their partners, expressed their willingness to do more for SDGs and Climate on the continent.
To watch again all the sessions of this event please click here
“Today, we have gone deeper into this issue: we have demonstrated the necessity to deepen the partnership between different types of actors, and at different scales of action. With only one objective: Africa’s Green and Resilient Recovery.” said Mr. Rioux. “African challenges, more than anywhere else, require us all to go seek coordinated responses and actions. In Africa, we certainly need to leave no one behind. Let’s Finance in Common and build a common story of investment in Africa.” He added.
During this event African public development banks, in a joint declaration, called for the heads of state and international organizations to support our role in the African financial system and provide us with the necessary means and incentives: a clearer mandate for climate and SDGs, additional capacity building, greater access to concessional resources as well as reinforcement of our capital bases, taking advantage of the expected SDRs issuance by the International Monetary Fund (IMF)
Read here the full press release on the event
Along with other African and international institutions IDFC members, including the the Development Bank of Western Africa (BOAD) CEO, Serge Ekue, the Development Bank of Southern Africa (DBSA) CEO, Patrick Dlamini, the Eastern and Southern Trade and Development Bank (TDB) CEO Admassu Tadesse but also experts from the AfDB, AFD and KfW, participated as panelists in the different sessions focused on concrete proposals and innovative financial solutions to unlock the potential of African PDBs to promote sustainable development investments in Africa.
“African Public Development Banks have a key role to play to fully align with the Paris Agreement, foster Biodiversity inclusion & ensure a Just Transition for a sustainable future in Africa” said DBSA CEO Patrick Dlamini.
As AfDB CEO Dr. Akinwumi Adesina stated during the event: “Together, within the framework of Financing in Common, let us move forward boldly and strengthen institutional capacities, governance and financial capacity of public development Banks.As public development banks, we must deepen our ability to reach all parts of Africa. To ensure financial inclusion, especially for the unbanked, and expand access to finance, savings and insurance products and services, we need to work as one unified system.”
More to come under the Finance in Common movement !
30 March 2021
UN Fin4Dev 2021 Report highlights the crucial role of PDBS in financing SDGs
SDGs AchievementIDFC is a proud member of the Inter-Agency Task Force on Fin4Dev in charge of the UN Report
The 2021 Financing for Sustainable Development Report (FSDR) of the Inter-agency Task Force (IATF) on Financing for Development led by the UN Department of Economic and Social Affairs (UN DESA) was launched on March 25th, 2021, with a focus on the financing of the sustainable recovery in the context of the Covid-19 crisis.
For the first time IDFC contributed to this report and one of the key statements was that the United Nations recognized the crucial role of Public Development Banks (PDBs) in reorienting global finance towards SDGs and even call upon the international community to strengthen the system of development banks, in the trend of the Finance in Common Summit.
On the top of the 26 mentions of the term “Public Development Banks”, now officially recognized by the UN, the report is clearly recommanding in its introduction a call for PDBs as such in the financing of sustainable development investments :
“ The international community needs to better leverage public development banks (PDBs) as a tool for sustainable development investment. In many countries, PDBs were instrumental in supporting the COVID-19 crisis response, including those newly established by countries of the South. Well-managed PDBs can allow for a more transparent accounting of both public liabilities and associated assets—in essence they can ringfence assets and borrow against them……..The international community can help strengthen the system of development banks; for example, cooperation between national and multilateral banks can help banks build capacities while also leveraging local knowledge; continued research on appropriate capital, risk management and SDG reporting frameworks can support PDB governance and risk-informed lending for SDG investments”
Moreover, in its press release UN DESA is emphasizing on this recommendation by inviting to ” better use the PDBs as a investment toll in sustainable development”
This recognition is a great achievement for the Club’s efforts in advocacing for Sustainable Development Investment and the IDFC leading role in the Finance in Common Summit that is now become the Finance in Common Systems, positionning itself, more and more strongly within the development finance community.
2021 FDSR full report here
UNDESA Press Release here
15 February 2021
IDFC Members explore how the Covid-19 crisis affected their Business Models
Covid19A CDG Capital led report shows how IDFC members came up with solutions to address the short-term economic damage of the crisis
The major transformations observed at the level of the IDFC members’ business model following the covid-19 crisis, are essentially linked to the additional mobilization of resources and the use of financial instruments, innovations, the implementation of a new risk approach and the digitization of operations.
In a report supervised by the Moroccan institution CDG Capital, the private sector arm of IDFC member Caisse de Dépôt et de Gestion (CDG), the survey of 15 IDFC members demonstrate that, through quantitative and qualitative inputs, and case studies, IDFC members were able to quickly came up with solutions to address the short-term economic damage and the health crisis by mobilizing private resources and blending them with their own capital, and by designing new financial instruments, fast track approval processes and digital tools.
A new approach to risk management is being developed with a focus on integrating ESG and climate risks in the credit appraisal. Most relevant to the question of cooperation, the survey indicates that the covid-19 crisis has accelerated the partnership with all stakeholders mainly with the state and regional state authorities, other development banks, commercial banks, the private sector and NGOs.
For more also have a look at CDG Capital Sustainable Development Director, Laila MIKOU’s op-ed (French version)
12 December 2020
IDFC, leader of PDBs Coalition, celebrates the Paris Agreement 5th Anniversary
ClimateIDFC voices the Public Development Banks Coalition Commitment to align with the Paris Agreement Objectives
At the occasion of the 5th Anniversary of the Paris Agreement & the Climate Ambition Summit
IDFC highlighted the unprecedented PDBs Climate Commitments
12 December 2015 – 12 December 2020, for the Paris Agreement 5th Anniversary’s celebration, IDFC the largest provider of public development and climate finance globally, spearheading the alignment with the Paris Agreement objectives since its creation, reiterated its engagement as a Club but also, for the first time, presented, as co-organizer of the Finance in Common Summit, the launch of the global Coalition of all the Public Development Banks (PDBs), with a strong focus on climate action.
At the invitation of the French President Emmanuel Macron to a Green and Climate Finance event un
der the main theme of “Climate finance, carbon neutrality perspective 2050” celebrating both the Paris Agreement but also the 3rd One Planet Summit (OPS) Anniversary at the Elysée, the French Presidency Palace, along with head of states, international organizations and MDBs, Rémy Rioux, IDFC Chairperson reported on the joint declaration of the Summit with a focus on climate action, in line with the OPS core mandate.
Along with Mr. Rioux, Mrs. Antonella Baldino, Cassa de Depositi & Prestiti (CDP) Chief International Development Finance Officer, participated in the event, to support, as IDFC member, the benefits for national development banks, such as CDP, to belong to the club and beyond to the PDBs coalition to foster the public banks efforts, at the local and international level, in boosting climate action and align their activities with the Paris Agreement objectives.
Moreover, IDFC, through the voice of its Chairperson Rémy Rioux, had the opportunity to share the PBDs commitments towards the Paris Agreement Alignment with the organizers and participants of the Climate Ambition Summit 2020. Co-hosted by t
he United Nations, United Kingdom and France, in partnership with Chile and Italy, the Climate Ambition Summit 2020 is a monumental step on the road to the UK-hosted COP26 next November in Glasgow.
The PDBs commitments to align their activities with the Paris Agreement are concrete. It would be reflected in means supporting the definition and implementation of ambitious NDCs, adaptation plans, and long-term strategy while also making sure that every project financed provides a positive contribution to our climate goals.
Read Remy Rioux full speech shared with the Climate Ambition Summit here.
18 November 2020
Finance in Common Summit: A great success with major IDFC contributions
International Event
The IDFC members joined all the Public Development Banks in a coalition for a sustainable, greener and more inclusive post-covid recovery
All together aligned with the SDGs and the Paris Agreement objectives
The Finance in Common Summit held in a total digital platform from 9 to 12 November was an unprecedented success, thanks to the strong involvement and commitment of the IDFC members and their partners, other Public Development Banks (PDBs), multilateral development banks and associations of DFIs.
IDFC, co-organizer of the event, played a triggering role in the dynamic of the Summit. A role strongly acknowledged as well as its vision of aligning finance with climate and Sustainable Development Goals (SDGs) and leadership within the PDBs community.
A great success with great figures :
• 2000 people attended the Plenary session & more than 10 000 participants in total attended the Summit
• 12 thematic High Level Events related to the main SDGs have been organized and,
• 10 Declarations among which the Joint Declaration of all PDBs and additional statements endorsed by IDFC or its members, including :
– IDFC Statement on Climate & SDGs: Together for a Sustainable & Resilient Global Recovery, advancing the Paris Agreement & Sustainable Development Goals
– IDFC Common Position Paper on Biodiversity
– Paris Development Banks Statement on Gender Equality & Women’s empowerment – signed by 12 IDFC members
– Letter of intent for the launch of a Sport for Development Coalition of PDBs and Partners – signed by 5 IDFC members
The FIC Summit was also a great opportunity to showcase IDFC achievements and new partnerships such as :
– On SDGs Alignment: Aligning finance with the SDGs: IDFC contribution to the sustainable recovery and the 2030 Agenda
– On Climate finance: The International Development Finance Club, largest provider of climate finance in the world, strengthens its commitment to meet the Paris Agreement Goals
– On Biodiversity finance: Members of the International Development Finance Club are combining forces to make Finance work for Nature
– On support to refugees & displaced people : The International Development Finance Club releases its first report on the role of PDBs in supporting refugees & forcibly displaced people
– Announcement of the partnership with the World Federation of DFIs (WFDFI): IDFC and the WFDFI sign a Statement of Partnership to support the alignment of financial flows with the Sustainable Development Goals
– Reinforced partnership with the Green Climate Fund with the launch the GCF-IDFC joint publication: The IDFC and the Green Climate Fund join forces to support Public Development Banks in financing the green transition
As a preamble to the Summit, the 14th AFD International Research Conference on Development, the Visible Hand: Development Banks in Transition, was also a great achievement thanks to IDFC members contributions. During the conference, the Institute of New Structural Economics (INSE) at Peking University and the Agence française de développement (AFD) released the first comprehensive database on development banks.
All the sessions, déclarations and press releases are available on the FICS website. Moreover, all High Level Events as well as the plenary session are available on replay on the FICs youtube channel.
IDFC members are proud to have been a cornerstone to the FIC Summit that gives a strong and unified voice to the PDBs community, much needed in this unprecedented context. Looking forward to another edition of the Summit for a stronger PDBs coalition !
IDFC Contribution to the 14th AFD International Research Conference on Development
The Visible Hand : Development Banks in Transition
The 14th AFD International Research Conference on Development, The Visible Hand: Development Banks in Transition has taken place in the framework of the Finance in Common Summit. In the context of the severe crisis affecting the world following the Covid-19 disruption, this conference focused on development banks’ key contribution to the SDGs, and to paving the way to rebuild our economic systems in a more responsible and sustainable way. The conference unfolded in two parts: Academic Days from November 3-5, and Open Discussion Days on November 9 and 10, 2020.
Watch the replays on the playlist Visible Hand
During the Academic Days, the findings of the International Research Initiative on Public Development Banks (PDBs) working groups, which brings together 28 researchers from 20 institutions around the world, were presented through 16 research papers. This initiative is part of a research program launched by the Institute of New Structural Economics (INSE) at Peking University, sponsored by IDFC alongside the French Development Agency (AFD)and the Ford Foundation.
The Open Discussion Days gathered renowned economists, researchers, Public Development Banks representatives and other stakeholders. High-level speakers included IDFC représentatives:
- Rémy RIOUX, IDFC Chairperson & CEO of the Agence française de développement (AFD)
- Admassu TADESSE, President and Chief Executive of the Eastern & Southern Africa Trade & Development Bank (TDB)
- Serge EKUÉ, President of the West Africa Development Bank (BOAD)
- Lavinia BARROS DE CASTRO, Manager of the Risk Division at the Brazil Development Bank (BNDES)
- Fritzi KÖHLER-GEIB, Chief Economist of the German KfW Group
The main outcomes of the conference served as a basis for the Finance in Common Summit
- An original database on Public Development Banks (PDBs) which provides, for the first time, a comprehensive mapping of more than 450 public development banks worldwide, and groundbreaking material on PDB’s current state of alignment with Agenda 203
- 16 research papers, shedding light on previously unexplored topics, such as the inclusion of Development Banks in the global financial architecture, the characterization of SDG-compatible investments, the regulatory frameworks and governance of PDBs
- 10 policy recommendations for decision makers on Public Development Banks which focus on:
- Developing the framework of their action, scaling up their means, and adapting the regulations
- Building a coalition bringing them together, to inspire change and lead other stakeholders to follow suit.
- The aim of reasserting and strengthening PDBs’ crucial role as the forefront for transitions towards low-carbon, resilient and equitable socio-economic models
Launch of a joint IDFC – GCF Publication on Public Development Banks’ potential for a green recovery & Release of the 2020 IDFC Green Finance Mapping Report Figures
The IDFC, the international network of leading national and regional development banks, and the Green Climate Fund (GCF), the world’s largest dedicated financer of climate action in developing countries, have today launched a joint report titled “A strategic alliance to realize the full potential of public development banks in financing the green transition” examining how Public Development Banks (PDBs) can unlock their potential for a green, low carbon and resilient future.
Speaking from Songdo during the virtual press conference, Yannick Glemarec, GCF Executive Director, stated:
“While climate finance has grown steadily over the past 10 years, the current pace is too slow to achieve the Paris Agreement goals. GCF’s partnership with 30 Public Development Banks, including the 13 members of IDFC that are GCF accredited project partners, can play a critical role in increasing climate finance for developing countries. The paper we are launching today sets out the vision of IDFC and GCF for collaboration to unlock the potential of Public Development Banks to finance low-carbon, climate-resilient development pathways. It highlights some of the transformative initiatives that can be co-financed by GCF and IDFC members, as well as the challenges for such synergies to materialize. To address some of these challenges, GCF will contribute to the IDFC Climate Facility to support IDFC members enhance their capacities to scale up climate action. This will come from the GCF Readiness fund allocations of Panama, Peru, Brazil, Morocco and South Africa. ”
The press conference sheds light on the role and active participation of PDBs in climate finance, while also releasing the 2020 IDFC Green Finance Mapping Report Key findings. Elaborated in collaboration with the Climate Policy Initiative (CPI), this edition of the IDFC flagship report confirms the leading role of the Club in supporting climate finance, with green finance commitments of US$ 197 billion in 2019, including US$ 187 billion for climate and 3 times more financing for adaptation finance since 2015.
Rémy Rioux, IDFC Chairperson and CEO of the Agence Française de Développement (AFD), joining from Paris, underlined the importance of PDBs in supporting a green post-COVID 19 recovery and invited all to join the upcoming Finance in Common Summit, the first global Summit of all Public Development Banks:
« There are about 450 Public Development Banks around the world, operating at sub-national, national, regional, international and multilateral levels. They represent a staggering 10 percent of the total amount invested in the world every year by all public and private sources combined. With their public mandates and counter-cyclical roles, combined with deep roots in local economic and social fabrics, Public Development Banks are more relevant than ever to contribute to the reconciliation of economic recovery and sustainable development. They represent a “visible hand” that can help mobilize and direct the finance we need for the future we want. In this regard, I am convinced that the partnership between the Green Climate Fund (GCF) and the International Development Finance Club – which gathers the largest 26 PDBs – can contribute to support PDBs in contributing to supporting a green recovery as well as building long-term Paris Agreement-aligned development pathways. This alliance paves the ways to the upcoming Finance in Common Summit (FICS), gathering for the first time all the PDBs of the world.»
ALIDE General Assembly will evaluate the response of Latin American Development Banks to the COVID-19 crisis
October 7, 9, 13 & 15, 2020
On the path to the Finance in Common Summit
The Latin American Association of Development Financing Institutions (ALIDE) General Assembly will be held n October 7, 9, 13 and 15 and is made up of a series of digital events.
Co-organized by renowned international development financing institutions such as the Inter American Development Bank (IDB), the International Development Finance Club (IDFC), Agence française de développement (French Development Agency) and the Development Bank of Minas Gerais (BDMG), the event will establish the position of the banks of Latin America and the Caribbean for economic recovery, in preparation for the Finance in Common Summit (FICS), the first-ever global gathering of all Public Development Banks. The IDFC Chairperson, Rémy Rioux, will participate in the ALIDE General Assembly opening session on October 7 to set the objectives and the ambitions of the Summit. The FICS, taking place during the Paris Peace Forum in November 2020, will address our common need to build new forms of prosperity that take care of the living (people and planet) in a resilient manner.
To register to the ALIDE General Assembly please use this link.
The ALIDE General Assembly will bring the Development Bank System of Latin America and the Caribbean to evaluate in a digital meeting the performance in mitigating the COVID-19 crisis and the path to economic recovery. High level representatives fromthe financial institutions will discuss the various experiences faced during the pandemic, seeking to establish a balance.
Within the framework of the General Assembly, the position of the Latin American Development Bank System in the international debate on the COVID-19 crisis will be established. In this way, the meeting is framed in the context of Finance in Common Summit.
10 September 2020
“From Pandemic to Recovery” Online Conference hosted by VEB on the way to FIC Summit !
Covid19The First Event in preparation of the FIC Summit to highlight the role of Development Banks in a Sustainable & Resilient Global Recovery
View the full conference online
On the 9th of September 2020 the National Development Corporation of Russia (VEB.RF) and the IDFC organized an Online Conference “From Pandemic to Recovery” aligned with the First Global Summit of Public Development Banks “Finance in Common” that will take place in Paris on the 110h-12th of November, 2020.
Being planned at the height of the global socio-economic crisis, the Conference aimed to highlight the significant role of development banks in searching the right balance between short-term incentives and long-term vision supporting national economies in this turbulent period.
High level représentatives from the UN system, including UN Secretary General, Antonio Gutteres and Deputy SG, Amina Mohamed, from the Multilateral Development Banks, the Regional association of DFIs such as ALIDE & ADFIAP, IDFC Chairperson & French Development Agency CEO, Rémy Rioux and IDFC CEOs including the host of the event Igor Shuvalov, VEB Chairman, the recently appointed CEO of the Development and Investment Bank of Turkey (TSKB) , Ece Börü, but also the Development Bank of Southern Africa (DBSA) CEO, Patrick Dlamini and Islamic Corporation for the Development of Private Sector (ICD) CEO, Ayman Sejiny participated in this important event. The Development banks join forces to respond to the effects of the pandemic in its urgency while foreseeing long-term and sustainable solutions its socioeconomic consequences and the underlying environmental crisis. In other words, finance SDGs and leave no one behind.
This first event is the first step to the FIC Summit, hosted by the Paris Peace Forum in November, to have the chance to rethink our common need and build together new forms of prosperity that take care of the living (people and planet) in a resilient manner, with Alignment with the Sustainable Development Goals as a fundamental guide.
Seven IDFC members initiatives selected out of the 100 #SolutionsforPeace Projects
100 days before the First Global Meeting of all Public Development Banks
10-12 November 2020
On August 3rd, 2020 the Paris Peace Forum, that will host, during its third edition, the First Finance in Common (FIC) Summit, co-initiated by IDFC and the World Federation of DFIs (WFDFI) and convened by Agence Française de Développement (AFD- French Development Agency) in Paris but also virtually, revealed the 100 Selected Projects to participate from 11 to 13 November 2020. Among those seven projects are from IDFC members including the IDFC Climate Facility, first operational instrument of the Club !
The Paris Peace Forum (PPF) was created to respond to this crisis of multilateralism, which is not new but has sharply increased in 2020. Given the scale of the challenges before us, the Forum will devote its third edition to projects and initiatives from around the world aimed at providing immediate responses to the Covid-19 crisis, improving our resilience in the medium term, and rebuilding a more sustainable world.
The third edition of the Paris Peace Forum will be the first event on the international calendar focused on constructing a better world post-pandemic. As the Paris Peace Forum convenes actors of change from around the world to discuss global governance and multilateralism, the Finance in Common (FIC) Summit will be one of the main highlights of the third edition, gathering a new community comprised of more than 450 Public Development Banks (PDBs). The FIC Summit will address our common need to build new forms of prosperity that take care of the living (people and planet) in a resilient manner.
The objective of the Finance in Common Summit is twofold :
- to build a new and powerful coalition of all 450 public development banks to promote cooperation among them and;
- to bring together the financial community, both public and private, to give us the means to take collective action against COVID-19 and in favor of climate and SDGs.
The IDFC, one of the key actors in this event, which objectives are closely in line with the Club mandate and vision, is heavily involved in the preparation of the FIC Summit, through also its members operational experiences, demonstrated by they strong response to the PPF Call for Projects.
The PPF Call for Projects launched in March 2020 received more than 850 applications – a record since the creation of the Forum – from all types of actors: NGOs, companies, international organizations, states, local authorities… This is a sign that, despite the pandemic, there remains an astounding reservoir of international cooperation and a willingness to respond to the crisis collectively.
Among the 100 projects selected as Solutions to bounce back from Covid-19 crisis 11 are led by Public Development Banks and among them 7 are IDFC members projects, including the IDFC Climate Facility!
Congratulations to our colleagues from the Agence Française de Développement (AFD), Cassa de Depositi e Prestiti (CDP), Development Bank of Southern Africa (DBSA), the Indonesia Infrastructure Development Bank PT SMI and the Russian Development Bank (VEB) for this great acknowledgement. More details on the selected projects available at https://bit.ly/3fw4Orv.
28 May 2020
UN High-Level Event on Financing for Development in the Era of COVID-19 & Beyond
Covid19Remy Rioux, IDFC Chairperson Intervention
May 28th, 2020
The IDFC Chairperson and Agence française de développement (AFD) CEO, Rémy Rioux, talked on May 28th, 2020 during the United Nations (UN) High-Level Event on Financing for Development in the Era of COVID-19 and Beyond convened by the Prime Minister of Canada, H.E. Mr. Justin Trudeau, the Prime Minister of Jamaica, H.E. Mr. Andrew Holness, and UN Secretary-General António Guterres, the virtual event aims to advance concrete solutions to the development emergency caused by the COVID-19 pandemic.
Mr. Rioux intervened alongside heads of states, CEOs of international organizations and leaders of CSOs underlined that public development banks in financing SDGs should leave no one behind. He added that, particularly in time of crisis there is need to create new, innovative and comprehensive international coalitions, instilling hope, building momentum and strongly supporting multilateralism.
This is the reason why the IDFC is strongly involved in the “Finance in Common Summit”, on 12th November 2020, in partnership with the Paris Peace Forum, during which all 450 Public development banks in the world will gather for the first time, with all willing stakeholders and with the support notably of UN DESA and UNDP. The public development banks already represent 10% of total annual global investments. They are already playing a countercyclical role nowadays and are eager to do more.
Along with the World Federation of DFIs, colleagues from Multilateral Development Banks and the regional associations of Public Banks, the IDFC members are working together to forge a global response to the COVID-19 development challenges in the future. Read the full speech.
IDFC combating Covid-19 by stepping up efforts towards building more resilient economies for people & planet
As the world is facing an unprecedented crisis caused by COVID-19, IDFC members have been mobilizing their full set of instruments and financial capacity.
IDFC is committed to capitalizing on its members respective experiences to respond to the crisis with the view to structure the most adequate collective answer to support a sustainable and inclusive economic and financial recovery.
IDFC members actively respond to the situation with a full set of measures with the view to structure the most adequate collective answer to support a sustainable and inclusive economic and financial recovery. All these initiatives are attached to this press release and will be regularly updated on IDFC website.
31 January 2020
NDBs: Building bridges between Public & Private climate action at OECD PF4SD Conference in Paris
ClimateNational development banks: Building bridges between Public and Private Climate Action
OECD Private Finance for Sustainable Development (PF4SD) Conference
On January 28, 2020 the Organisation for Economic Co-operation and Development (OECD) hosted in Paris the 2020 Private Finance for Sustainable Development (PF4SD) Conference. It was the occasion for the International Development Finance Club (IDFC) to demonstrate how National and Regional development banks are poised to play a key role in aligning private finance with the SDGs and the objectives of the Paris Agreement.
The OECD, IDFC and the Overseas Development Institute (ODI) jointly organized this side event to discuss the role of development banks, to collate evidence on challenges to unlock their potential, and explore opportunities to address these challenges. While the assets under management in development banks dwarf multilateral development bank financing in many developing countries, their transformative potential goes beyond the sheer volumes of finance provided. Their unique value added lies in the ability to support policy makers and market creation, the provision of local currency financing and their role in intermediating international climate finance.
Moderated by Jonathan Coony, Senior Climate Finance Specialist, World Bank, benefitting from the crossed remarks by Jorge Moreira da Silva, OECD Director for Development Co-operation Directorate and Rémy Rioux, IDFC Chairperson and AFD CEO, the discussion drew on key messages of the OECD report ‘Scaling up climate-compatible infrastructure: Insights from national development banks in Brazil and South Africa’ and the launch of a new ODI report ‘Securing climate-smart investment through national development banks’ presented by Samantha Attridge, ODI Financial Markets Director. Astrid Manroth, Director for the Finance Strategy of the European Climate Foundation (ECF), pointed out the comparative advantages of development banks in climate finance.
Several IDFC members, such as Admassu Tadesse, President and Chief Executive, Eastern and Southern African Trade and Development Bank (TDB), Nabil Moura Kadri, Head of Department, Environment and Amazon Fund, Brazil Development Bank (BNDES), Mohan Vivekananda, Development Bank of Southern Africa (DBSA) Group Executive for Client Coverage & Origination and Refik Akıncı, Turkiye Sinai Kalkinma Bankasi (TSKB)’s Sherpa for IDFC and Director of IDFC Climate Facility Coordination Unit were participating in the side event illustrating the role of their institution with concrete examples and explained their strategy in raising ambition within the Framework of the Paris Agreement on climate change.
Join IDFC Pavilion at COP 25 !
2-13 December 2019, Madrid, Spain, IFEMA, Hall 8 – In front of Spain Office
For the first time this year IDFC will have its own pavilion at COP25 !
The IDFC Pavilion will be located at the IFEMA Convention Center in Hall 8 just in front of Spain Office. The IDFC Pavilion will be inaugurated on Tuesday 3rd December by Rémy Rioux, IDFC Chairperson and Agence Francaise de Developpement (AFD) CEO. On the same day, the IDFC team will also present the first operational instrument of the Club the IDFC Climate Finance Facility. We invite you all to join us at the Press Conference and the Cocktail that will joyfully end this day.
The IDFC Pavilion will host IDFC members and partners Side Events throughout the two weeks of the COP25 to exchange on Development Finance Institutions alignment on the Paris Agreement, Climate and Biodiversity, role of development banks in Climate Action. Consult the full IDFC Pavilion Programme of Events.
See below the list of our Day by Day Side-Events :
Tuesday 3rd of December
15:30 to 16:00 : Inauguration of the Pavilion in presence of Rémy Rioux, IDFC Chairperson and Agence Francaise de Developpement CEO
16:30 to 18:00 : Kick Off IDFC Climate Facility
18:00 onwards : IDFC Cocktail
Thursday 5th of December
13:00 to 14:00 : Banque Ouest Africaine de Développement (BOAD): BOAD’s Carbon neutral initiative
15:00 to 17:30 : Development Bank of Latin America (CAF) : Expert Dialogue on Bioenergy and Climate Ambition
17:30 onwards : CAF Cocktail
Friday 6th of December
10:30 to 11:30 : WWF: From climate to biodiversity reporting for financial institutions
11:30 to 13:30 : Development Bank of Latin America (CAF) : Climate finance for the new sustainable economy
14:00 to 15:00 : Japan International Cooperation Agency (JICA) : Multi-Stakeholder Dialogue for Southeast Asian Cities on the Rise
17:00 to 18:30 : AFD Adapt’Action Facility : Adaptation in Niger, Madagascar and Tunisia: issues and lessons learned through Adapt’Action Facility
18:30 onwards : AFD Adapt’Action Facility Cocktail
Saturday 7th of December
9:30 to 10:30: KfW Bankengruppe : The Sustainable Development Goals – Implementation into the banks’ practice
11:00 to 12:30 : Climate Policy Initiative (CPI) : Scaling up blended finance solutions
14:00 to 15:30 : IDFC, I4CE, Climate Policy Initiative (CPI) : Paris Alignment – Solutions of implementation into the banks’ practice
17:00 to 19:00 : IDFC Closed door session – Alignment & Green Finance Mapping Worskhop (open to IDFC members only)
19:00 onwards : IDFC Cocktail
Monday 9th of December
10:00 to 11:30 : IDFC & Green Climate Fund (GCF) : Transformational climate action : today and tomorrow
11:30 to 12:30 : 2050 Pathways : Getting Countries to Net Zero – Lessons from deep decarbonization pathways in Latin America
12:30 to 13:30 : OECD : Aligning Development Co-operation and Climate Action: The Only Way Forward
13:30 to 14:45 : World Resources Institute (WRI) : Enhancing Climate Ambition and Social Justice in 2020 revised NDCs
15:00 to 17:00 : Development Bank of Latin America (CAF) : Building resilience in the vulnerable coastal cities in Latin America within the Adaptation Fund Regional Programme
Tuesday 10th of December
11:45 to 13:00 : OECD & Germanwatch : Re-thinking development banking: Case studies and tools for Paris alignment
14:00 to 16:00 : ALIDE & IDFC: The role of development banking in the implementation of climate and green finance: critical aspects to move forward
17:30 to 19:30 : Development Bank of Latin America (CAF) : Climate Change : The new evolutionary challenge for the Galapagos
19:30 onwards : CAF Cocktail
Wednesday 11th of December
9:30 to 10:30 : Development Bank of Southern Africa (DBSA): Climate finance solutions in Sub Saharan Africa – Opportunities & Challenges
11:00 to 12:00 : Development Bank of Latin America (CAF): Cities and Climate Change LAIF Program – Readiness GCF Program
12:30 to 14:30 : Vnesheconombank (VEB) : Green Approach for Sustainable Urban Development in Russia
17:30 to 18:30 : IDFC Climate Facility : What’s Up ?
18:30 onwards : IDFC Cocktail
22 October 2019
IDFC Annual Meeting 2019 : Rémy Rioux Reelected as Chairperson of an extended Club
General
IDFC 2019 Annual Meeting in Washington D.C.:
Accession of two new members
Reelection of IDFC Steering Group and Rémy Rioux as IDFC Chairperson
A second term focusing on setting Development Banks at the core of International Development Architecture while reinforcing IDFC operational capacity
At its 2019 Annual Meeting held in Washington D.C. on October 20th, the members of the Club officially elected its Steering Group and Rémy Rioux, Agence Française de Développement (French Development Agency CEO, for a second term as IDFC Chairperson. Rémy Rioux presented his roadmap for this new term with a strong focus on putting Development Banks as core actors in aligning finance with Paris Agreement and Sustainable Development Goals while giving the Club a stronger operational capacity to deliver on its mission.
“ I am also committed to unleashing the full potential of public national and regional development banks to best deploy and facilitate increased investments towards low-carbon and resilient trajectories; advancing the needed sectorial and national transitions to sustainable development; and making a systemic contribution to the achievement of the objectives of both the Paris Agreement and the 2030 Agenda of Sustainable Development.” Rémy Rioux said. “In practice, we propose that, under UN sponsorship, a Summit of Development Banks be organized in 2020, ahead of COP 26, to mobilize all development finance institutions worldwide as well as the broad spectrum of their stakeholders, with a view of further tapping their decisive potential” Rémy Rioux added.
On this occasion IDFC members also reelected and extended its Steering Group – chaired by the French Development Agency (AFD) and co-chaired by the Development Bank of Brazil (BNDES), the Latin American Development Bank (CAF), the China Development Bank (CDB), the Moroccan Caisse de dépôt et de gestion (CDG), the Development Bank of Southern Africa (DBSA), the Islamic Corporation for the Development of the Private Sector (ICD), the Japan International Cooperation Agency (JICA) and the German Development Bank (KfW)– by allowing the Industrial Development Bank of Turkey, TSKB, to join the decision-making group of the Club.
The Annual Meeting was also the venue to welcome officially two new members: the Argentine development bank, Banco de Inversión y Comercio Exterior (BICE) mainly focusing on SMEs and private sector development and PT Sarana Multi Infrastruktur (Persero) (PT SMI), the Indonesian public bank for infrastructure development.
The Annual Meeting offered the opportunity to review IDFC Work Program reflecting the commitments towards the Sustainable Development Goals. In particular, IDFC released a Joint Statement on Gender Equality and Gender Equity highlighting IDFC members’ commitment via both internal and external policies for gender equality and gender equity issues, which are key catalysts for sustainable development.
In the view of fostering and deepening cooperation, IDFC released for the first time its Cooperation for Development Report assessing the level and quality of the cooperation among members and highlighting opportunities to reinforce it. IDFC also produced a report providing an Overview and benchmark of Blended Finance and a Panorama of Sustainable Investments Initiatives and Networks.
Read the full press releases on :
21 October 2019
IDFC & the World Federation of Development Financing Institutions jointly call for a Summit of Development Banks
GeneralThe International Development Finance Club (IDFC) and the World Federation of
Development Financing Institutions (WFDFI)
jointly call for a Summit of Development Banks to fully tap the potential of Development
Finance institutions towards the Paris Agreement and SDGs agendas
For the first time, the WFDFI, the World Federation of Development Financing Institutions, regrouping the Continental Associations of Development Finance Institutions in Africa, Asia-Pacific, the Middle East, Latin America and the Caribbean, and IDFC, the international group of 26 leading national and regional development banks, invited each other to participate at their respective Board of Governors Meeting (WFDFI) and Annual Meeting (IDFC), both held in Washington, D.C. on October 18 and 20, to bundle the potential of all development banks worldwide to promote and leverage sustainable development investment.
19 July 2019
IDFC at the UN High-level Political Forum (HLPF) on Sustainable Development, NYC
ClimateFor the first time an IDFC delegation composed of Rémy Rioux, IDFC Chairperson & French Agency for Development (AFD), Patrick Dlamini, Chief Executive Officer and Managing Director of the Development Bank for Southern Africa and Ayman Sejiny, Chief Executive Officer of the Islamic Corporation for Development of Private Sector attended the United Nations High-Level Political Forum (HLPF) for Sustainable Development from 15th to 18th of July 2019.
On this occasion, the delegation had the great honor to meet with Antonio Gutteres, UN Secretary General to exchange on the IDFC role on Climate Action and SDGs attainment.
On the perspective of the forthcoming UN Climate Action Summit, the delegation shared with the UN SG and also with Amina Mohammed, UN Deputy Secretary General
and with Luis Alfonso de Alba UN SG Special Envoy for the Climate Summit 2019
On the margin of the HLPF, during the Green Climate Fund High Level Side Event on “Strengthening Synergies : the role of the GCF in implementing the Paris Agreement & the 2030 Agenda”, the delegation reiterated its support to the GCF institutionalized by the recent signing of the GCF-IDFC Partnership Statement.
Patrick Dlamini, DBSA CEO, noted that GCF replenishment is needed for developing countries to meet the Paris Agreement goals. “If more and more countries come forward to replenish GCF, we’ll have a much better chance of achieving and successfully implementing the Paris Accord as well as making sure that SDGs are achieved”
Rémy Rioux also praised the successful GCF replenishment :”GCF is the main and only multilateral fund that is open to us. It is a place of innovation because of its flexibility. It has capacity that is very unique. IDFC members are the strongest advocate for the Fund and we hope for strongest possible replenishment” Read the full Press Release on the GCF Replenishment for more details.
Overall, a great collective IDFC mission to fulfill our mission in advocating for Sustainable Development Investment and Climate Finance support.
26 June 2019
IDFC & the GCF sign a Statement of Partnership to join forces in fighting Climate Change
Climate
On the occasion of the IDFC 2019 Steering Group Meeting, hosted by its Moroccan member the Caisse de Dépôt & de Gestion (CDG Group), Rémy Rioux, IDFC Chairperson and CEO of AFD and Yannick Glemarec, GCF Executive Director, signed an IDFC-GCF Partnership Statement establishing a framework for collaboration to strengthen climate action and the promotion of joint initiatives, in the following areas:
- Sharing knowledge for climate finance and action
- Integration of climate considerations within financial institutions
- Facilitation of access to GCF resources with co-financing from IDFC members and support to capacity building activities
- Outreach and awareness raising
You can also read the full Partnership Statement here.
28 May 2019
Conference on National Development Banks: Supporting the SDGs & Structural Transformation, Beijing, China
SDGs AchievementOn May 28th, 2019 the Institute of New Structural Economics at Peking University (INSE), the Research Institute of China Development Bank and the French Agency for Development (AFD) , co-organized this conference. This one day event gathered Chinese and international scholars, think tanks and members of the development finance community, including members of IDFC, from all continents. The Conference was opened by Rémy Rioux, AFD CEO and IDFC Chairperson, Yong Liu, China Development Bank (CDB)’s Chief Economist and Dean of Research Institute and Justin Yifu Lin, INSE Professor and Dean. “‘Thinking globally and acting locally : National Development Banks are key to achievement of the SDGs” said Rémy Rioux.Hamid Tawfiki , CEO of CDG Capital, member of the CDG Group, Mutsuya Mori, JICA Vice President, Michael Hillary, DBSA Group Director, Financing Operations, Dr. Wolfram Erhardt, Director of KfW Beijing office, Leonardo Botelho, BNDES Head of the Cooperation and International Relations Department and Carlo Segni, Gruppo CDP Head of Cooperation and Development participated in panel discussions to delve deeper into the nature and role of national development in addressing SDGs and Climate Finance, their function in promoting economic structural transformation. Together with experts, scholars, policy-makers, practitioners, and other stakeholders in the field of DFIs this event fostered the reinforcement of a vibrant community of DFI research and practice. The event was also be the opportunity to present and discuss the latest analytical pieces of work produced by the Institute of New Structural Economics, the China Development Bank and the Center for Global Development study on IDFC and SGDs.
View the China Global Television Network Video on the conference (French)
At the invitation of Instituto de Crédito Oficial (ICO), Casa de América in Madrid, Spain was the venue for the Forty-ninth Regular Meeting of the Latin American Association of Development Financing Institutions (ALIDE) General Assembly, that took place from Monday through Wednesday, May 20 – 22, 2019. This is the summit meeting of the Latin American and Caribbean development banking system where key aspects and trends affecting the region’s development and its financing, together with the role of those institutions, are analyzed. This year theme was : Experiences and Financial Cooperation Europe-Latín America
IDFC members representatives including Alexis Bonnel, IDFC Sherpa from AFD, Johannes Scholl, in charge of the Energy division & Latin America Financial Sector at KfW and Javier Diaz Fajardo, President of Bancoldex, actively participated in the event and discussed best practices to help aligning all financial flows with the Paris agreement and promote sustainable development investment with Javier Manzanares, Deputy Executive Director, Green Climate Fund (GCF), Jeannette Ruiz, President, Banco Nacional de Costa Rica, Eric Usher from UNEP FI and Justine Leigh-Bell, Director Market Development, Climate Bonds Initiative
The Latin American Association of Development Financing Institutions (ALIDE) is the international organization that represents Latin American and Caribbean development banking. It was created in 1968 and, at the invitation of the Government of Peru, established its permanent headquarters in Lima, Peru’s capital city.The programs, projects, activities and services the Association promotes and carries out are aimed at fostering the unity and strengthening the joint action and coordinated participation of the development banks and financial institutions in the region’s socioeconomic progress.
IDFC at the One Planet Summit in Nairobi: Africa Pledge
The One Planet Summit, since its first edition in 2017 mobilizes the International Development Finance Club. For this first regional edition of the One Planet Summit, the unique role of Africa will be highlighted as a global partner facing both challenges and opportunities, in particular in the field of innovative solutions for adaptation and resilience. The Summit will bring together high-level officials, CEOs and inspiring voices from youth, and civil society to showcase concrete achievements and breakthrough initiatives, and trigger new coalitions and commitments. Designed as a full day of High-Level conversations and Coalition building for Climate and Environmental action in Africa, the event will start just before the opening of the high-level segment of UNEA-4, in a dedicated venue on the UN Compound in Nairobi, on March 14, from 9 am to 5 pm. See the full programme here
During the Summit, the Trade Development Bank (TDB), member of IDFC, regional development bank operating in East Africa, based in Nairobi is representing the Club. TDB President Admassu Tadesse will speak as keynote speaker at the opening of the « Sectorial Deep Dive Accelerating the Transition for All – Alignment of Development Bank with the Paris Agreement and Long Term Sustainable Financing in Africa ». This session of Deep Dive, from 14:00 to 15:00 on March 14, will aim to continue the discussions initiated during the COP 24 on the operationalization of the alignment with the Paris Agreement for development banks, especially in the African context, as well as the different tools, processes, methodologies and actions of financial institutions to accelerate climate finance in Africa. In addition to TDB, high-level stakeholders and a variety of institutions, including from the private sector, will be represented, including the Green Climate Fund, fellow IDFC member the Development Bank of Southern Africa (DBSA), the African Development Bank (AfDB), the European Investment Bank (EIB) and the Kenya Commercial Bank (KCB).
Aligning financial flows in Africa should help seize the enormous, yet still largely untapped, renewable energy potential of the continent, and more generally support pathways for low-carbon and resource-efficient growth. No continent will be struck as severely by the impacts of climate change as Africa, given its geographical position, the vulnerability of African populations and the reliance of economies on natural resources. For this reason, aligning financial flows with adaptation and resilience imperatives is of paramount importance for Africa. IDFC, as the largest provider of climate finance globally, could play a pivotal role in this aim for this promising and growing continent.
Press Release : IDFC and TDB Convene DFIs at the One Planet Summit in Nairobi
IDFC Sherpa meeting at AFD: the first edition!
On February 21st and 22nd, the IDFC sherpa meeting was held for the first time at Agence Française de Développement (AFD), president of the Club and especially for the first time in Paris since the creation of the Club in 2011! A record participation as 20 of the 24 member institutions were present from German KfW to China Development Bank through Colombian Bancoldex or Japanese JICA. Another first, the participation, as observers in anticipation of becoming officially members of the club at the next annual meetings in October 2019, the Indonesian infrastructure development support bank PT SMI and the Argentine National Development Bank , BICE.
During these two days, marked by the intervention of the AFD’s CEO and President of IDFC, Rémy Rioux, and under the sign of the reinforcement of the cooperation and the collaboration between the members of the club
Since their 1st edition in 2015 at COP21 in Paris, and then in Casablanca in 2016, the IDFC Climate Finance Fora have been investigating the multiple processes, tools, approaches, methodologies and institutional set-ups that make it possible to concretely design, finance and implement climate-smart action in developing countries at the required scale.
This year’s IDFC Climate Finance Forum will take the form of a series of events co-organized by IDFC members at COP 24 in Katowice, Poland. Have a look at the programme.
IDFC seeks to contribute to the international green finance agenda. Have a look at this year key milestones:
IDFC Green Mapping 2018 – Summary version
IDFC Green Mapping 2018 – Full report
IDFC Position Paper : Aligning with the Paris Agreement
MDB IDFC Lessons Learned on Climate Change Adaptation Finance Tracking – Summary
MDB IDFC Lessons Learned on Climate Change Adaptation Finance Tracking – Full Report