Back

Collaboration and ESG language to unlock funding for sustainable infrastructure projects

September 5, 2023
Related topics: 
Economy

Developing countries face many challenges in mobilising private sector investment for sustainable infrastructure projects. Solutions include international cooperation and common environmental, social and governance (ESG) taxonomies. To close the climate finance gap, we need additional private investment especially in low- and middle-income countries.

To serve this purpose, Multilateral development banks (MDBs) are encouraged to expand their support for sustainable infrastructure projects and increase their risk appetite. Furthermore, collaboration among G20 public development banks (PDBs) is encouraged to leverage their strengths and promote transformative impact.

A common ESG language will also help standardise assessments of sustainable investments, reduce greenwashing and attract specialised capital. The G20 is called upon to strengthen institutional networks among developing countries, to strengthen the PDBs, and to create a universal ESG taxonomy for sustainable finance.

Ultimately, the recommendations in this paper aim to contribute to a more sustainable global economy by fostering cooperation, reducing investment risks, and accelerating the flow of funds to sustainable infrastructure projects.

Speakers
Sabrine Emran
Economist
Sabrine Emran is a Finance graduate specializing in financial markets and commodities. She holds a Grande Ecole master’s degree in Management from IESEG School of Management and ISCAE Group, as well as a Specialized master’s degree in Financial Markets from Paris Dauphine University and ENSAE ParisTech. Sabrine Emran started her career in investment writing and product development in the asset management branches of insurance companies and investment banks in Paris, working mainly on alternative investment asset classes. She was also recently a commodities analyst, focusing on risk management strategies for energy and agricultural commodities as well as foreign exchange risks. Sabrine Emran joined the Policy Center for the New south in September 2022 as an economist where she ...

RELATED CONTENT

  • Le RCEP et le « Quad », deux coups de tonnerre
    Authors
    Dominique Bocquet
    November 25, 2020
    Coup sur coup, deux accords géants sont venus marquer l’actualité internationale. L’un, est économique et sonne comme un coup de tonnerre : c’est le RCEP (Regional Comprehensive Economic Partnership), vaste accord commercial asiatique, signé le 15 novembre 2020. Cette date restera dans l’histoire comme ayant associé la Chine à un ensemble de pays asiatiques. Il inclut l’ASEAN (Association des Nations d’Asie du Sud-est, à l’initiative de la démarche) mais, aussi, le Japon et la Corée ...
  • Economy Recovery and Scars from Coronavirus
    November 24, 2020
    The global economic activity has climbed up since June but there are signs that the recovery may be losing momentum. Instead of a V, U, W, or L, a square root as a recovery shape looks more likely, as we approached before in this series. And the crisis is likely to leave deep, unequal s...
  • Download PDF
    La guerre commerciale sino-américaine: Quel bilan à l’issue de la présidence Trump ?
    Authors
    Laurence Nardon
    Mathilde Velliet
    November 23, 2020
    En 2016, l’une des grandes promesses de campagne du candidat républicain Donald Trump était de mettre fin aux pratiques commerciales chinoises, jugées déloyales et responsables du déficit commercial américain. L’imposition d’importants droits de douane allait forcer le gouvernement chinois à négocier. Les pratiques dénoncées par Trump – sous-évaluation du yuan, transferts forcés de technologie, violations de la propriété intellectuelle, manque d’ouverture aux importations – s’inscr ...
  • A Bad Year? Climate Variability and the Wine Industry in Chile
    Authors
    Eduardo Amaral Haddad
    Patricio Aroca
    Pilar Jano
    Ademir Rocha
    Bruno Pimenta
    November 23, 2020
    Short-term climate conditions may affect crop yields and vintage quality and, as a consequence, wine prices and vineyards’ earnings. In this paper, we use a Computable General Equilibrium (CGE) model for Chile, which incorporates very detailed information about the value chain of the wine sector in the country. Using information for the 2015-2016 harvest, we calibrate climate variability shocks associated with a “bad year” for the wine industry in Chile, when premature rains occurre ...
  • Quantitative Easing in Emerging Market Economies
    Authors
    Otaviano Canuto
    November 19, 2020
     “This time was different” in terms of the monetary policy responses to capital outflow shocks felt by emerging market economies (EMEs), as pointed out by a November 12 Bank for International Settlements bulletin. The pandemic-related global financial shock that hit in March and April led to close to $100 billion leaving EMEs (see my previous article). This was answered by local monetary authorities in ways different from previous episodes. This time there was even the use of quant ...
  • Download PDF
    African Infrastructure Development : What should be done to win the next decade ?
    Authors
    Mahmoud Arbouch
    Oumayma Bourhriba
    November 16, 2020
    Africa is experiencing economic growth deceleration that reached 2.9% on average between 2010 and 2018, against 5.4% between 2000 and 2010. The sectoral performance of African economies depends critically on the stock and quality of infrastructure, directly as an essential input (for example, energy and transport) and indirectly by increasing total factor productivity. African economic integration, and the hoped-for emergence, can never be fully achieved with poor infrastructure, bo ...
  • Download PDF
    L’automobile : une filière marocaine stratégique, leader du secteur en Afrique
    Authors
    Henri-Louis Vedie
    November 13, 2020
    Avec la venue de Renault à Melloussa, près de Tanger, puis de PSA à Kenitra et, demain, du Chinois BYD, à Casablanca, la filière automobile marocaine aura atteint une capacité annuelle de production de 700 000 à 1000 000 de véhicules, sous différentes marques. Ce qui fait que le Maroc est aujourd’hui le leader des modèles de Tourisme en Afrique. Cette étude rappelle les grandes étapes de cette marche de la maturité et de l'excellence, qui commence en 1959, avec la Somaca (la Société ...
  • “The buck stops with the executives”: Assessing the impact of workforce composition and cultural distance on French firms’ exports
    Authors
    Yves Jégourel
    Raphaël Chiappini
    November 13, 2020
    This article analyzes the impact of firms' workforce composition on cultural distance and export performance. On the one hand, empirical literature has shown that there are dark trade costs that hinder trade performance, among which is cultural distance; on the other hand, the literature has shown that firms' export performance is positively correlated with employees’ qualifications. Using a unique database of 59,606 French firms, we reconcile these two streams of literature by esti ...
  • Download PDF
    Mobilizing Resources for a More Sustainable World: The Role of Subnational Development Banks
    Authors
    Sergio Gusmão Suchodolski
    Cinthia Helena de Oliveira Bechelaine
    Adauto Modesto Junior
    November 13, 2020
    The effective implementation of the 2030 Agenda requires a greater level of capital mobilization and new institutional arrangements that guarantee the better allocation of these funds. Based on concrete results from the experience of the Development Bank of Minas Gerais, in Brazil, this paper argues that Subnational Development Banks (SDBs) can be powerful players within development finance institutions’ networks, as their local expertise can bring efficiency and effectiveness to th ...
  • Download PDF
    The Internal Geography of Services Value-Added in Exports: A Latin American Perspective
    Authors
    Eduardo Amaral Haddad
    Inácio F. Araújo
    October 27, 2020
    We estimate the contents of services value-added incorporated in goods exports in different countries in Latin America, exploring the local dimension of the results. We use inter-regional input-output analysis to trace and map domestic value-added embedded in those countries’ exports. We add to the discussion of global value chains the internal, withincountry geography of trade in value-added, since the set of locational preferences that help understanding the spatial patterns of na ...