The first Finance in Common Summit held on 9-12 November 2020 gathered the world’s 450 public development banks to address recovery from the COVID-19 pandemic in line with the principles of sustainable finance.
The banks issued a joint declaration pledging to increase their focus on the climate emergency. Pledges also address: the energy transition; biodiversity, oceans, and nature; health; gender equality; digitalization; and leaving no one behind, highlighting the need for a “global framework for SDG-compatible finance.”
Before the Summit, a group of European development banks issued a separate pledge to phase out fossil fuel investments, and said they will work towards a stronger position on investment in coal in time for COP 26.
It is clear that a seismic shift in the financial market is starting to take hold. Access to finance for the developers of projects consuming fossil fuels is going to become ever more challenging, though exciting new opportunities exist for those adopting transition strategies or investing in renewable energy technologies.
The Banks also “will mainstream resilience and adaptation in our strategies and operations and enhance action to fund the definition and implementation of national adaptation plans. We will help redirect private financial flows in support of low-carbon and climate-resilient sustainable development.”