The Climate Finance Advisory Service (CFAS) is planning an online event on “multilateral development banks’ (MDBs) partnerships with international climate funds – complementarity and coherence in the context of international climate finance architecture reform” – on the 2nd of November 2023, 1:00-2:00 pm UTC.
The international climate finance architecture is a complex landscape in which MDBs play a prominent role. In addition to bilateral climate finance flows, donor countries provide international climate finance directly to MDBs, as well as to multilateral climate funds such as the Green Climate Fund (GCF), Global Environmental Facility (GEF), Adaptation Fund (AF) and Climate Investment Funds (CIF), which MDBs also tap into for project finance. This raises questions about the efficiency and effectiveness of the international climate finance landscape, as well as concerns with regard to complementarity and coherence.
Recently, the call for a process of reform of the international financial architecture (IFA) has gained significant momentum among the international community. This IFA reform process is not limited to climate-change-related finance; however, climate-change-related issues and how to make MDBs in this context fit for purpose, are an important focus area. Several questions need to be answered in this context, one of them concerning the MDBs role within the international climate finance landscape.
During the event, Germanwatch will present key insights from a recently published discussion brief that is looking at the MDBs’ role in the broader climate finance architecture, in the context of potential reform. The discussion brief looks at why MDBs seek to access finance from the above-mentioned climate funds, to implement climate change projects, instead of directly using their own funding. It also provides insights on the rationale and logic of MDBs in tapping into climate funds and related benefits and positive impacts. On the other hand, the discussion brief also poses the question of whether MDBs tapping into climate funds is the most effective use of those funds and whether this has implications for other actors. Finally, the discussion brief provides insights on how current incentives for MDBs to tap into climate funds can be explained by structural problems and policies or other obstacles and barriers within and beyond the MDBs.
During the online event several stakeholders from the MDBs, climate funds and civil society will share their reflections on the topic.
Registration link: https://us06web.zoom.us/webinar/register/WN_2bso0jjgR5i0OsO7MKk19w
· Bertha Argueta (Germanwatch)
Reflections on the discussion brief:
· Representatives from MDBs, climate funds and civil society
· Julia Grimm (Germanwatch)