"CMIA helped to explain the potential for project-based mechanisms across a variety of constituencies and is a key voice driving the conversation on results-based finance and sector approaches for scaling-up emission reduction investments. We urgently need input from organisations like CMIA to operationalise Art 6 of the Paris Agreement."

Mr. Franz-Josef Schafhausen, former Director General Climate Change, European and International Affairs, Federal German Ministry of the Environment, Nature Conservation, Building and Nuclear Safety

Development banks mobilise US$ 175 billion of private finance in 2019

25th January 2021 by CMIA

Multilateral development banks (MDBs) and development finance institutions (DFIs) have mobilised US$ 175 billion of private finance in 2019.

Multilateral development banks (MDBs) and development finance institutions (DFIs) have mobilised US$ 175 billion of private finance in 2019, an increase of 9 per cent over the previous year, a report on the activities of 27 institutions published today finds.

The report also finds:

  • The reporting MDBs and DFIs mobilised US$ 63.6 billion of private finance in operations in middle- and low-income countries.
  • This figure includes US$ 6.7 billion mobilised for low-income countries, a significant increase of 21 per cent over 2018.
  • The total mobilisation includes US$ 20.1 billion in private direct mobilisation, an increase of 18 per cent over 2018 and a key priority of many MDBs.
  • Since reporting began in 2016, MDBs have collectively increased mobilisation of private finance by 7 per cent.

These investments support global sustainable development goals by promoting inclusive and sustainable growth, fighting poverty and inequality, mitigating the effects of climate change, or achieving other development impacts.

The report shows that mobilisation of private investments is critical for development and greater mobilisation is consistent with greater reductions in poverty and key living standards. Going forward this approach will also be crucial in recovery efforts from the coronavirus pandemic.

Christian Kleboth, EBRD Director, Loan Syndications, said: “Overcoming the longer-term consequences of the Covid-19 crisis will require addressing fundamental questions of sustainable and inclusive development. MDBs will play a crucial role by providing sustainable public financing and delivering objective policy advice that draws on decades of experience. Very importantly, MDBs need to continue their focus on mobilising private capital in order to leverage their own investments. Moving beyond the crisis phase, we need to ensure we genuinely build back better.”

The report entitled “The Mobilization of Private Finance by Multilateral Development Banks and Development Finance Institutions 2019” is the fourth of the series. Based on a common methodology it measures private investment in development projects for which MDBs and DFIs have provided financing.

Access the full report here: http://bit.ly/MDBbill