Global power generation must rapidly decarbonize by mid-century to meet the goal of stabilizing global warming below 2 degrees Celsius. To meet this objective, multilateral development banks (MDBs) have gradually reduced fossil fuel and increased renewable energy financing. Meanwhile, globally active national development finance institutions (DFIs) from Japan and South Korea have continued to finance […]
The world is in urgent need of infrastructure investment, particularly in emerging markets and developing countries (EMDCs). Multilateral development banks (MDBs) have a key role to play in maintaining a socially and environmentally sustainable development trajectory, as they have the financial capacity, technical skills and international standing to undertake quality infrastructure investments. However, the “legacy” […]
An ambitious global agenda on climate change and sustainable development has emerged from the landmark international agreements of 2015. Together, the UN 2030 Sustainable Development Goals (SDGs), the Paris Agreement and the Addis Ababa Action Agenda aim to deliver strong, sustainable, balanced and inclusive growth, reduce global poverty and secure a better and more sustainable […]
In July 2014, Brazil, Russia, India, China and South Africa — the BRICS— agreed to establish a new multilateral development bank (MDB), the New Development Bank (NDB). In October of the same year, China and 20 other Asian nations signed an agreement to create the Asian Infrastructure Investment Bank (AIIB). The declared aim of both […]
The last few decades have seen significant progress in multilateral institutions across the Global South. Southern-led multilateral development banks (MDBs) play a key role in harnessing global capital to finance the sectors most important to borrowers, especially infrastructure. Two prominent Southern MDBs, the Development Bank of Latin America (CAF) and the Islamic Development Bank (IsDB), […]
Projects implemented by multilateral development banks (MDBs) seek to support countries’ economic and social development. In most cases, aid is provided for investment projects that support development or implementation of medium-term economic and legal reforms. The literature on the effectiveness of these development projects has traditionally focused on ex-post analysis. While this is the appropriate […]
After years of policy debate and advocacy, the World Bank and other multilateral development banks (MDBs) have developed a series of policies commonly referred to as ‘Environmental and Social Safeguards’ (ESS) aimed at preventing and mitigating social and environmental harm related to loan projects. In response to global climate change and inequality, the World Bank […]
Bangladesh is about to embark on a major transformation of its energy system. To meet the growing energy demand, the government plans to increase coal-fired power generation from 2 percent to 50 percent of the country’s total mix by 2041. Looking towards a development future with increased coal, what will be the socioeconomic, environmental and […]
The international community needs to annually mobilize trillions of dollars in order to close infrastructure gaps and meet the goals and commitments of the Group of 20 (G20) and the UN 2030 Sustainable Development Goals, (SDGs) and to date, private sector and national governments are falling far short of financing these goals. Development finance institutions […]
Multilateral development banks (MDBs) have a critical role to play in filling global infrastructure gaps as well as achieving the objectives of Sustainable Development Goals (SDGs) and the Paris Climate Agreement. The MDB business model allows development banks to borrow funds from capital markets at relatively cheaper rates than what could be obtained by sovereign […]