IDFC contribution to the fourth edition of the Finance in Common Summit6 September 2023
The fourth edition of the Finance in Common Summit took place from 4 to 6 September in Cartagena de las Indias, Colombia, for the first time in Latin America and the Caribbean.
All participants warmly thanked the Colombian authorities for hosting this event, honored by the presence of H.E. President Gustavo Petro.
Co-organized by IDB, ALIDE, Bancoldex, CAF, CDB providing the specific experience of their region, alongside with EIB, AECID, CDP, AFD, IFAD and IDFC, the Summit, under the overarching theme of “Building new alliances for the future of development banking”, focused its discussions around four key topics: climate and biodiversity; sustainable infrastructure; SMEs and financial inclusion; and equipping Public Development Banks to support them as SDG enablers.
Plenary 4: Aligning Public and Private Finance with the SDGs
- On the eve of the UN SDG summit that will mark the mid-point in the implementation of the 2030 Agenda and the Sustainable Development Goals, IDFC strengthens its ambition through a position paper on SDGs alignment.
- In this paper, IDFC presents a framework for the alignment of Public Development Banks with the SDGs as well as individual information and commitments by different IDFC, reflecting the implementation of the SDGs.
- Based on the principle of making all financial flows compatible with achieving the SDGs, the framework comprises concrete elements for implementation at three different levels: (1) entity (policies and strategies, human resources and incentives), (2) operations (processes and tools, products and services, accountability) and (3) external partners (mobilization of stakeholders).
- IDFC is also willing to pursue the strategic dialogue with other stakeholders of the wider financial community towards a shared understanding on what it means to align the financial flows with the SDGs.
From Aspiration to Action : Mapping PDB’s Path to Paris Agreement Alignment
- For more than a decade now, the International Development Finance Club (IDFC) has conducted an annual mapping of member institutions’ green finance contributions.
- In 2022, IDFC members reported a record high of $288 billion in total green finance commitments, a 29% increase from 2021. Cumulatively, green finance commitments by IDFC members surpassed $1.5 trillion since the Paris Agreement was signed in 2015. There are notably $221 billion in climate finance committed in non-OECD countries. This is the result of IDFC members’ unique ability to deliver green finance at scale in their wider pursuit of Paris Alignment. Mitigation finance continued to grow, reaching its highest level to date ($244.7 billion), up 31% over 2021. Adaptation finance also reached a record high, increasing 52% to $31.6 billion.
- More than half of IDFC members increased their green finance returning to, or surpassing, pre-pandemic levels.
- Finance for biodiversity projects remained stable in 2022, totalling $18.2 billion.
Panel 5: Innovative financing for Gender Equality: Focusing on women and Women MSME’s
- IDFC Gender Tracker is a new monitoring and reporting tool for the IDFC members to screen and track their commitments to gender equality.
- The first IDFC Gender Finance Mapping, for 2021, was conducted with 9 IDFC members: AFD, BICE, CABEI, CAF, DBSA, HBOR, KFW, NAFIN, TSKB. They reported that they committed close to €10 billion for gender focused or gender sensitive projects. This is almost 20% of the reporting PDBs’ new commitments in 2021 (€54.5bn). IDFC will do this mapping on a yearly basis.
- It shows how PDBs integrate gender considerations in their investments, with gender as either the primary or secondary focus. It is a key driver to identify where the needs are, to reach SDG 5 on Gender Equality.