IDFC & GCF join forces to support PDBs in financing the green transition6 November 2020
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.»