Other Publications

From Multi- to National- and Back Again: Realizing the SDG Potential of Public Development Banks

Author:

Thomas Marois, Jacob Stewart, Régis Marodon

Year:

2023

Publisher:

Agence française de développement

Number of pages:

Available languages:

Available Formats:

PDF (EN)

Abstract

Public multilateral (MDBs) and national development banks (NDBs) are already working to advance the 2030 Sustainable Development Goals (SDGs). But can they do more to help deliver finance at the right pace and scale and on the terms appropriate for catalyzing global green and just transitions? What potential roles might enhanced cooperation between multilateral and national development banks play in achieving green and just transitions? This paper contributes to our understanding of the potential of public development banks by mapping out the interrelations between nine MDBs and select NDBs in four regions. The analysis finds that MDBs are lending to NDBs in their regions, but unevenly so; that MDB reporting of cooperation

with NDBs is uneven; that MDBs see multiple barriers to lending to NDBs; and that, with a few exceptions, MDBs are not aligning or tracking SDG financing systematically. Based on this, the paper makes three recommendations to help advance a more integrated and catalytic MDB NDB ecosystem of SDG public finance.

First, MDBs and NDBs need to co-develop simple yet meaningful metrics to track cooperation.
Second, MDB and NDB governing boards must require their public banks to meaningfully and transparently report on and align with the 2030 Sustainable Development Goals (SDGs).
Third, leaders, regulators, public bankers, and civil society need to start thinking and acting according to a ‘whole of public financial ecosystem’ approach.