Ahead of COP26, E3G takes a look at what is expected, and needed, from the Multilateral Development Banks (MDBs).
This briefing paper looks at three elements
- The state of play ahead of COP26 – A summary of the progress individual MDBs have made in five areas. These are; Paris alignment, fossil fuel exclusions, climate finance, climate risk and nature based solutions.
- Increasing the scale of finance – This will focus on the need for MDBs to deploy sufficient public capital and increase their role as mobilisers of private capital.
- Expected MDB Announcements at COP26 – A summary of when announcements by the MDBs will be made.
The role of the MDBs
MDBs have an important role in helping developing and emerging economies move toward climate neutrality and resilience. They need to become agents of transformative change, pushing for a clean, just and resilient development model.
Scaling up support for clean development and supporting countries in identifying how to streamline decarbonisation and economic development is essential.
It is both feasible and necessary for MDBs to play a larger role during this critical juncture. To meet the challenge, they must deploy sufficient public capital and increase their mobilisation of private capital.
“Shifting the trillions” of private sector financing will require a greater de-risking of investments. This can help send long-term market signals that can act as a major accelerator.
The MDBs have failed to jointly present how they will contribute to keep 1.5°C global warming in reach. The MDBs need to come forward with a quantitative statement on their climate finance ambition for COP26.
