Multilateral development banks welcome G20 roadmap for MDB reform

The directors of ten multilateral development banks (BMD) today welcomed the adoption by G20 leaders of the Roadmap to better, bigger and more effective MDBs. The roadmap outlines a comprehensive vision to continue reforming the MDBs to better address regional and global challenges, create more jobs and opportunities, and support countries to accelerate progress towards the Sustainable Development Goals (SDGs) and the objectives of the Paris Agreement.

The MDB roadmap builds on the call of G20 leaders in New Delhi last year and fulfills a priority of the Brazilian G20 presidency. The G20 document outlines recommendations to increase the financing capacity of the MDBs and maximize their impact. Importantly, the roadmap encourages development banks to continue working “as a system”, collaborating more effectively with governments, national and subnational development banks and the private sector, among others.

The MDB Heads Group worked closely with the Brazilian G20 Presidency to build on the extensive work already carried out by the MDBs. This includes the publication of an MDB Outlook Note in April 2024 outlining 16 concrete outcomes in priority areas. The note reflected an unprecedented level of collaboration between the institutions and led to several milestones over the past year. Fourteen of the results of the note were incorporated into the G20 Roadmap. The MDBs also contributed to the prioritization of the Roadmap, outlining short and medium-term actions to sequence its application.

The MDB Heads Group also highlighted some of the transformative achievements made this year. Among them, having achieved their collective goal of increasing the lending margin by around $400 billion over the next ten years.

MDB climate finance lending increased to an all-time high of $75 billion for low- and middle-income countries and $50 billion for high-income countries in 2023, while private finance mobilized by the MDBs almost doubled to reach $101 billion as of 2022.

They increased their collective climate finance estimates for low- and middle-income countries to reach $120 billion in 2030, up 60% from 2023, complemented by another $50 billion estimated for high-income countries.

They published the MDBs’ common approach to measuring climate outcomes and a note on their common understanding and way forward in national platforms.

MDBs agree on how to align new financial flows with Paris Agreement goals

Launched a co-financing portal with opportunities to grow partnerships on 125 projects worth more than $95 billion.

Two new publications have been released through the Global Emerging Markets Risk Database Consortium (GEMs), with more detailed statistics that provide investors with more information on credit risk in emerging markets and developing economies. development.

The harmonization of procurement practices has been strengthened to reduce transaction costs and improve the efficiency and sustainability of supply chains, while efforts have been promoted to expand the 13 Mutual Trust Agreements in force on procurement between the MDBs.

It issued hybrid capital offerings and portfolio guarantees to increase lending capacity and strengthen resilience, and presented a pioneering proposal for channeling SDRs through the MDBs.

The MDBs also contributed to the prioritization of the Roadmap, outlining short and medium-term actions to sequence its application.

To build on this year’s momentum, and taking into account the G20 roadmap and its prioritization of recommendations, the MDBs will advance the implementation of their reform agenda and will collaborate with the South African G20 Presidency to monitor progress , leveraging existing reporting mechanisms and in line with their respective mandates and governance frameworks.

The presidency of the Group of Heads of the MDBs will pass on December 2, 2024 from the Inter-American Development Bank to the Development Bank of the Council of Europe.

The MDB Heads Group thanks President Ilan Goldfajn of the Inter-American Development Bank for his commendable leadership and dedication as Chairman of the Group.