Multilateral development banks (MDBs) are essential partners for emerging markets and developing economies (EMDEs) navigating the transition away from fossil fuels. With finite resources and shrinking timelines, accelerating implementation of the full MDB toolkit of support is vital. This briefing makes the case that the Santa Marta Transitioning Away from Fossil Fuels (TAFF) conference, held in April 2026, highlighted an opportunity for MDBs to better coordinate and deploy their collective support for country-led transition processes, catalysing delivery.
The Santa Marta TAFF conference underlined the message that despite growing momentum to transition away from fossil fuels, countries face persistent barriers: debt constraints, limited fiscal space, high costs of capital, and structural dependencies on fossil fuel revenues. This reflects the fact that the transition represents a broader, whole-of-economy transformation (and growth opportunity), requiring multifaceted, integrated packages of support that span policy advice, project preparation, financing, and risk mitigation. MDBs can be a core part of delivering this, through their financial clout, technical capacity, and convening power across international and national development finance ecosystems.
MDBs’ existing toolkit and the implementation gap
MDBs already possess a diverse range of instruments to support the transition, including blended finance vehicles, concessional windows, policy-based lending, and technical assistance for national transition planning. However, implementation of these tools remains fragmented and has struggled to reach the scale and pace necessary. Through organising existing instruments into accessible pathways for countries developing and implementing TAFF roadmaps, there is an opportunity for MDBs to accelerate deployment and contribute to a positive feedback loop that supports ambition, in a manner consistent with the wider shift towards integrated, country-led models of development cooperation.
A three-stage approach
This briefing outlines a proposal for strengthening MDB engagement across three stages of delivery, leveraging the political momentum generated by the Santa Marta conference:
- Planning: Integrate targeted support for the development of TAFF roadmaps as part of existing technical and policy support for national transition planning tools and strategies, focusing on whole-of-economy approaches that integrate financial, regulatory, and macroeconomic considerations.
- Implementation: Accelerate deployment of tailored instruments aligned with long-term transition pathways and national conditions, through pursuing support packages that combine complementary instruments from across different institutions for more systemic impact.
- Scoping: Map the regional landscape of financial, policy, and technical support available from public financial institutions for all stages and/or aspects of developing and implementing a TAFF roadmap, identifying gaps through consultations with countries and practitioners.
By proactively making the connection between ongoing international financial architecture reform, existing support mechanisms, and emergent TAFF processes, MDBs will be better placed to fulfil their mandates and effectively respond to the evolving needs of their clients as they navigate the transition. This can be the bedrock for enabling greater EMDE ambition and engagement on TAFF at both domestic and international levels, ultimately delivering sustainable development that leverages the transition away from fossil fuels as an opportunity through green diversification, reducing fossil fuel dependencies, and improving energy security.
