Today, I chaired a meeting of the Heads of the world’s 11 largest Multilateral Development Banks (MDBs). We met to discuss how our institutions can help address the key challenges the world economy faces now and in the longer term. The MDBs’ leaders talked about the wider repercussions from the war in Ukraine: the energy shock, disruptions of trade and global value chains, as well as food security concerns, which affect the way we all live and work and are testing the production capacity in many countries. These shocks compound economic and social fragilities developed during the COVID pandemic. They fuel global inflationary pressure that affects disproportionately the most disadvantaged and vulnerable people.
The group also addressed the challenges stemming from climate change, environmental degradation, and loss of biodiversity.
MDBs have an important role in responding to these mounting pressures. As chair of this group, I have been committed to fostering ever stronger collaboration in an evolving global context and to maximising development impact. I know my colleagues share my determination going forward.
The value of cooperation between the multilateral development banks is not an abstract concept but a concrete proposition that translates into impactful projects around the globe: whether into water projects in Jordan, female entrepreneurship in Kenya, transport projects in the Western Balkans, or climate resilience in the Caribbean, these are projects that improve people’s lives, creating opportunity and protecting the vulnerable. Cooperation among MDBs increases the value of their work and the benefits of that work on the ground, ensuring that we complement each other’s strengths, pool expertise and attract private and public finance to where it is most needed.
The Ukraine crisis has painfully reminded us that it is vital to reduce our dependence on fossil fuels and speed up our support for those already on the frontline of climate change. MDBs are resolved to increase the scale of their climate action, investment in green energy and support for adaptation to climate change. MDBs make a crucial contribution to climate finance. In 2021 alone, multilateral development banks committed $82 billion to climate financing, almost two thirds of which – $51 billion - was channelled to low and middle income countries, helping them gain access to affordable energy and adapt to the impact of climate change. This means we are well ahead of the climate finance goals set by the MDBs at the request of the UN Secretary General in 2019. But clearly we must and can do more. MDBs are well aware of their responsibility as powerful agents and influencers of change, and the potential for adaptation and improvement of the way we work together is today a crucial part of our deliberations.
MDBs have shown in the past that they can deliver with speed and at scale. I know for a fact that our collaboration adds value to the work of each of our institutions, and it has been a privilege to chair and coordinate our group for the past year. I wish the New Development Bank, who take over as chair in 2023, great success.
They can count on our full support.