Multilateral Banks Discuss Climate Finance

9 April 2010: Heads of Multilateral Development Banks (MDBs) and the International Monetary Fund (IMF) met on 9 April 2010, at European Investment Bank (EIB) headquarters in Luxembourg, to discuss plans to support a sustainable global recovery and climate finance. Participants at the meeting noted that the Copenhagen Accord offers an opportunity to take action to finance measures to combat climate change.

Beyond the immediate demand of responding to the global economic crisis, the MDBs discussed plans on crisis prevention. Speakers supported sustainable growth and development and, in particular, the need to combat climate change. They reaffirmed their readiness to provide technical support to the UN process and recognized the importance of concluding a legally binding post-2012 international climate change agreement as soon as possible.

MDBs considered implementation of fast-track financing important for building confidence prior to agreeing on a new international framework. They committed to coordinate actions as appropriate to enable client countries and other partners to maximize the effective use of additional financial flows. They also underlined their commitment to catalyze funds from the private sector. Furthermore, they fully endorsed and committed to support the UN Secretary-General's establishment of a High-Level Advisory Group on Climate Financing and the inclusion of the African Development Bank's (AfDB) President, Donald Kaberuka, in that Group.

The MDBs discussed continued harmonization of their approaches in the field of climate change and further joint work towards enhancing knowledge management and sharing of tools and methodologies for supporting countries with vulnerability and climate risk assessments, nationally appropriate mitigation actions (NAMAs) and improved forest management.

The Heads of MDB meeting is a bi-annual forum for the main international financial institutions to share views and set common objectives on key challenges such as climate change. Taking part in the 9 April meeting were: AfDB President Donald Kaberuka; Asian Development Bank (ADB) President Haruhiko Kuroda; European Bank for Reconstruction and Development (EBRD) President Thomas Mirow; EIB President Philippe Maystadt; Inter-American Development Bank (IDB) Vice President Roberto Vellutini; and IMF Deputy Managing Director Murillo Portugal. For the World Bank Group, Lars Thunell, Executive Vice President and CEO, International Finance Corporation (IFC), participated. The next meeting is due to take place in October 2010. [EU Press Release]