Two weeks ago, the first ever international summit of Public Development Banks (PDB) went down in Paris, unfolding over four days. Named the ‘Finance in Common Summit and under the patronage of the French Government and the aegis of AFD (Agence Française de Développement) and the International Development Finance Club (IDFC), it gathered virtually the world’s 450 public development banks, representing 10 per cent of global investment.
The summit gave rise to a series of major announcements. They all point towards a global financial system dedicated to fulfillment of the Sustainable Development Goals and alignment with the 2015 Paris Agreement: the first global agreement on climate and global warming.
The most impressive was a joint declaration signed by all public development banks, where they affirmed their determination to collectively shift strategies, investment patterns, activities and operating modalities to contribute to the achievement of the SDGs and objectives of the Paris Agreement, while responding to the Covid crisis.
Additionally, and for greater impact, they committed to join forces and form a global coalition of all PDBs around the world. The International Development Finance Club (IDFC), representing the 26 largest regional and national development banks in the world, and for which climate is already a priority, announced new measures, such as tools allowing PDBs to further align policies with the Paris Agreement and add a social dimension to their response to the Covid-19 crisis, while recognising the interplay between climate change and biodiversity. The IDFC also announced several flagship decisions, such as creation of the IDFC Climate Fund, announced at COP25, and a strategic partnership with the Green Climate Fund (GCF).
But that’s not all. Public development banks, and in particular Development finance institutions (DFIs) which provide technical and financial assistance to the private sector in developing countries, further committed to backing inclusive financial solutions for micro, small and medium enterprises. Read More
On gender equality, ResponsAbility Investments committed to applying a gender perspective to its investments through its climate fund. The IDFC also announced a massive investment in the conservation, sustainable use and restoration of biodiversity. These commitments, in continuity with the 2015 Paris agreement, and despite the Covid-19 pandemic, are good and helpful news for the way we build tomorrow.
But coming closer to Nairobi, what does it mean for us in Kenya and East Africa? During the summit, the Trade and Development Bank in Eastern and Southern Africa (TDB) and the Agence Française […]
