IDFC contribution to the Summit for a New Global Financial Pact23 June 2023
NFP Summit: Building a new consensus for a more inclusive international financial system
The New Global Financial Pact Summit gathered in Paris on June 22-23 public and private actors and affirmed their collective determination to address the joint climate, nature and development challenges through increased global cooperation.
This Summit highlighted the contribution of PDBs to the transformation of financial systems towards sustainability, by further structuring the Public Development Banks global movement and strengthening the dialogue with other stakeholders for the alignment of financial flows with the Paris Agreement, the SDGs and Global Biodiversity Framework and gathering National Development Banks, regional networks of PDBs, MDBs and other stakeholders (GFANZ, ISSB, NGFS, CSOs)
On this occasion IDFC members highlighted its activities on SDGs and on climate/biodiversity (Green Finance Mapping, Club’s climate and biodiversity commitments, climate facility)
IDFC and its members participated to the Finance in Common official special event as well as several side events:
FiCS Special event in the presence of President Emmanuel Macron and other Leaders gathered 17 IDFC members
“Leveraging Public Development Banks’ Investments for the SDGs”
The world is facing unprecedented challenges, from poverty, inequality, and lack of access to basic services, to climate change and other environmental crises. The fight against poverty, the decarbonization of our economy in order to achieve carbon neutrality by 2050, and the protection of biodiversity, are closely intertwined. The UN Sustainable Development Goals (SDGs), the Paris Agreement on Climate Change, and the Kunming/Montreal Global Biodiversity Framework provide a roadmap for the international community to address these challenges.
Public Development Banks (PDBs) can play a crucial role in bridging the financing gap and supporting a comprehensive agenda for people and the planet. Together, they hold assets worth over $23 trillion and invest annually more than $2.5 trillion, about 15% of total global investment, public and private. They can also mobilize local stakeholders, improve data quality and availability, and implement initiatives and recommendations for scaling-up public and private funding in infrastructure development.
FiCS was hosting a Special Event on June 22 as part of the New Global Financing Pact Summit. Attended by President Emmanuel Macron and other leaders, the event aimed to:
- Discuss how to leverage the role of PDBs to finance the SDGs, through stronger collaboration and more systemic approaches;
- Ensure that all PDBs support the objectives of the NFP Summit, by affirming the commitments of its members and by reminding and strengthening their mandates to scale up sustainable finance and to enhance the mobilization of the private sector;
- Accelerate the alignment of financial systems with the SDGs by engaging in an in-depth dialogue with other actors;
- Agree on the role of Finance in Common and Public Development banks in supporting a new consensus for a more inclusive international financial system.
Participants: National development bank, regional networks of PDBs, MDB and other stakeholders (GFANZ, ISSB, NGFS, CSOs) as well as 17 IDFC members: DBSA, TDB, CDG, AFC, SIDBI, JICA, PT-SMI, NAFIN, Bancoldex, CABEI, BNDES, CDP, ICD, CAF, KfW, BOAD, AFD
During this special event on “Leveraging PDBs investments for the SDGs”, participants expressed their willingness to step up their cooperation and work as a system, in the framework of the New Global Financing Pact Summit, to deliver the outcomes needed to help turn the SDGs into reality and mobilize the private sector. They set an ambition to innovate and expand their support to countries, consistent with their mandates and governance frameworks, to contribute to the SDGs and to tackle global challenges including climate change.
Click here to read the press release
Roundtable #6: Mobilizing the private sector for the SDGs: sustainable infrastructure and SME financing
Objective: How to promote business opportunities and their financial sustainability? How to mobilize domestic resources, public institutions and private funding? And finally, how can small and medium-sized enterprises grow in size and hence contribute to a diverse and resilient private sector?
This event resulted to a declaration from the Working Group 3 for a new pact between public and pricate investors to increase investment in sustainable infrastructure in emerging markets and developing countries.
Affiliate event: Capital Mobilization roadmap roundtable
- Organized by CPI, in partnership with IDFC, The Children’s Investment Fund Foundation (CIFF), Bloomberg Philanthropies and GFANZ
- Focus on how to prioritize promising solutions and how to get the robust ideas of many in the international finance community to implementation
Side-event: Defining impact for the transition in concrete terms
- Organizers: Climate Policy Initiative (CPI), Iddri, Institute for Climate Economics (I4CE), NewClimate Institute, World Resources Institute (WRI)
- Objective: to bring in the debate country representatives and DFIs to exchange on how they are advancing on the climate and development agenda, what are their specific objectives related to the transition to low-carbon resilient economies and how to define impact?
AFC participation to the Sustainable Finance in LMICs: Innovative Actions for the EU
Ayaan Adam, CEO of AFC Capital took part to the High Level Expert Group for Scaling Up Sustainable Finance in Low and Middle Income Countries has been reflecting on innovative actions the European Commission can take to accelerate the flow of private capital towards sustainable investments in LMICs. The HLEG revealed and seeked feedback from the audience on its first key results and recommendations. The panel also showcased an existing Team Europe Initiative, Investing in Young Businesses in Africa, when discussing policymaking in support of early-stage businesses.
Official deliverables of the New Global Financing Pact Summit:
Chair’s summary of discussions:
“The International Development Finance Club (IDFC) was encouraged to strengthen capacities of public development banks and local actors for sustainable and bankable project origination and development, building on the success of the IDFC’s technical assistance facility on climate. In addition, the Alliance for Green Infrastructure in Africa (AGIA) received financial and technical support by donors and financial institutions for early-stage project preparation and development capital for private sector investment in Africa, and further support could usefully be explored.”Click here to read more
Proposed roadmap to build on key milestones of the international agenda:
“Partners have called on the International Development Finance Club (IDFC) to launch a pan international program of capacity building and staff secondment, which will aim to strengthen capacities of public development banks and local actors for sustainable and bankable project origination and development, building on the success of the IDFC’s technical assistance facility on climate.”Click here to read more