UN climate talks called for substantial changes to the world’s system of multilateral development banks, to make them better prepared to scale the climate-protection fight.
CarrZee: This should prevent the MDBs from “accidently” worsening the climate crisis as they attempt to eradicate poverty, for instance.
It also will help deploy the trillions of US dollars needed each year, because it can derisk private investment. Most of the available money for climate action and economic transition resides with private investors.
Unedited key section:
61. Calls on the shareholders of multilateral development banks and international financial institutions to reform multilateral development bank practices and priorities, align and scale up funding, ensure simplified access and mobilize climate finance from various sources and encourages multilateral development banks to define a new vision and commensurate operational model, channels and instruments that are fit for the purpose of adequately addressing the global climate emergency, including deploying a full suite of instruments, from grants to guarantees and non-debt instruments, taking into account debt burdens, and to address risk appetite, with a view to substantially increasing climate finance;
- Calls on multilateral development banks to contribute to significantly increasing
climate ambition using the breadth of their policy and financial instruments for greater
results, including on private capital mobilization, and to ensure higher financial efficiency
and maximize use of existing concessional and risk capital vehicles to drive innovation and