Fostering a global public financial ecosystem for development and climate action
The Think Tanks (T20), one of the engagement groups of the G20, recently released the policy briefs that it commissioned earlier this year, as part of the Brazilian G20 presidency. Eurodad contributed to one policy brief that advocates for a global ecosystem of public national and multilateral development banks that can serve as a pillar for democratic, accountable, and transparent finance for development and climate action. This ecosystem should be grounded in public-public collaboration, rather than in the risky over reliance on private finance that dominates much of the practices today.
The international financial architecture has not mobilised the long-term, low-cost, and stable finance needed to facilitate green and just transitions, to achieve the Sustainable Development Goals (SDGs), or to fulfil the Paris Agreement. This is due to an over reliance on and the under-performance of private finance and an under-appreciation for and the under-utilisation of global public banking capacity to confront the challenge. Policymakers should call on public national development banks (NDBs) and multilateral development banks (MDBs) to begin fostering a global public financial ecosystem grounded in accountable public-public collaboration.