Multilateral development banks discuss COVID recovery, climate action, energy, food security and wide-ranging repercussions of war in Ukraine
23 April 2022
EIB President Werner Hoyer chairs Washington meeting of MDB heads
Reinforcing MDB financing key to tackling emerging global challenges, including energy and food security
Werner Hoyer, President of the European Investment Bank, today chaired a meeting of the heads of 12 multilateral development banks to discuss MDBs’ role in tackling current global crises, from the fallout of the war in Ukraine to recovery from the pandemic and climate change. EIB Vice President Ambroise Fayolle also attended the meeting.
“Limited progress on climate, the shock of the COVID-19 pandemic, and now the war in Ukraine all threaten to unravel years of development gains”, said Hoyer. Opening a session entitled, “Between pandemic and war – MDBs’ role in fostering resilient, sustainable, and inclusive growth,” President Hoyer recalled that whilst the war is taking place in Europe, its effects are felt the world over.
“The war in Ukraine impacts the world as a whole. Deglobalisation and a fragmented multilateral landscape are emerging as the new normal. MDBs must not lose their focus on the 2030 Agenda and the challenges posed by the achievement of Sustainable Development Goals,” said Hoyer. “We are all devastated by the terrible destruction inflicted by the Russian army on Ukraine and its people. The horror we are witnessing strengthens our determination to act. Discussions in Washington today with fellow heads of multilateral development banks highlight how global repercussions from the continued COVID-19 pandemic, the war in Ukraine and the climate crisis require us to step up financial and technical engagement around the world.”
At the meeting in Washington, D.C., MDB leaders discussed ways to cooperate in countering the energy and commodity shock and rising social tensions, while accelerating the green transition. In the second session, “Climate and environment – MDBs’ role in adaptation and beyond”, participants discussed opportunities for enhanced cooperation and coordination in helping the world adapt to a changing and more extreme climate.
“Multilateral development banks have a unique role mobilising trillions of high-impact private and public investment around the world. During these uncertain times, fostering closer cooperation and targeting our combined strengths is more important than ever”, said Hoyer. “MDBs are key tools in crowding in private capital. This is essential to achieve faster progress on climate, invest more in innovation, and accelerating climate mitigation and adaptation,” said Vice President Ambroise Fayolle.
MDBs also highlighted how increased economic and political uncertainties are causing governments to shift the focus of public spending. This makes mobilization of private sector investment around the world more urgent than ever.
The leaders of the African Development Bank, Asian Development Bank, Asian Infrastructure Investment Bank, Council of Europe Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank, International Finance Corporation, International Monetary Fund, Islamic Development Bank, New Development Bank and World Bank participated in the meeting.
Global challenges like development and migration can only be tackled efficiently when Multilateral Development Banks (MDB) work together even more closely, EIB President Werner Hoyer stressed at the World Bank/IMF Annual Meetings in Washington on Friday. “We are strong believers at the EIB in multilateralism and co-operative structures”, the President of the European Investment Bank said in a panel discussion with heads of other leading MDBs at the World Bank headquarters. “The EIB is open to close collaboration with other MDBs.”
An increase of over 22 per cent on the previous year, boosting projects that help developing countries and emerging economies cut emissions and address climate risks. Climate financing by the world’s six largest multilateral development banks (MDBs) rose to a record high of US$ 43.1 billion in 2018, up more than 22 per cent on the previous year.
Climate financing by seven of the world’s largest multilateral development banks (MDBs) accounted for $61.6 billion in 2019, of which $41.5 billion (67%) was in low- and middle-income economies, according to the 2019 Joint Report on Multilateral Development Banks’ Climate Finance. The study expands the scope of reportingfor the first timeto all countries of operation. It now provides data on MDB climate finance commitments beyond those directed solely at developing and emerging economies, but with the focus remaining on low- and middle-income countries.