Building upon the positive results of the first edition of the Finance in Common Summit (FiCS), in 2021 all Public Development Banks (PDBs) convened for a second time to strengthen their partnership and reinforce their commitments in support of common actions for climate change and sustainable development.
The second edition of the FiCS took place in Italy and will provide a new opportunity to emphasize the role of PDBs in liaising with other actors to reconcile short-term response to the pandemic with longer-term measures for economic recovery. The event engaged the entire development finance community to discuss priorities on the mobilization of financial resources for the achievement of the 2030 Agenda and the Paris Agreement as well as to provide PDBs contributions to the international debate.
The FiCS movement is part of the international agenda. Therefore, the 2021 Summit was also the occasion to elaborate more specifically on the role of PDBs and take action in the transformation of food systems - including agriculture and agribusiness - for food security, adaptation to climate change and the preservation of biodiversity.
The Second edition of the FiCS was held in Rome in Autumn 2021 19-20 October under the auspices of the Italian G20 Presidency.
In line with the first edition of the FiCS, to ensure broad and effective engagement of all stakeholders, and in light of the challenges related to the Covid-19 crisis, the Summit deployed a mix of in-person and enhanced digital session formats.
The Finance in Common Summit was an initiative of the World Federation of Development Finance Institutions (WFDFI) and the International Development Finance Club (IDFC) with the support of all the members of the FICS coalition.
The second edition of the Summit was hosted by Cassa Depositi e Prestiti (CDP), in partnership with the International Fund for Agricultural Development (IFAD).
The event gathered the entire Finance in Common coalition, comprising more than 500 Public Development Banks (PDBs) and other key stakeholders including but not limited to international organizations, governments, central banks, private sector corporates and financial entities, philanthropies, civil society, think tanks and members of the academic community, forming together the Finance in Common System.
Following the open and inclusive approach adopted last year, the second edition of the Finance in Common Summit would welcome individual contributions to the agenda of the event from all interested PDBs and stakeholders, including private sector entities and civil society to build a common, shared vision for the Summit.
OBJECTIVES OF THE SECOND EDITION OF THE FICS
The second edition of the Finance in Common Summit notably aimed to:
- Consolidate the coalition of all PDBs as fundamental actors of the development finance architecture. PDBs represent a bridge between national policy goals and global challenges, linking public interests and private capital, in an attempt to balance public policies and market rules. This second edition is an important opportunity to underscore the crucial role of PDBs and further organize their coalition.
- Reinforce coordination and cohesion among PDBs and other key financial actors, sharing strategic priorities, best practices and methodologies, confirming PDBs determination to collectively shift their investment patterns and activities to contribute to the achievement of the SDGs and the objectives of the Paris Agreement, while responding to the Covid-19 crisis.
- Take stock of the commitments made in the Joint declaration of all Public Development Banks in the World during the first FiCS and report on the results achieved by PDBs and their stakeholders on global and urgent issues. The second edition of the Finance in Common Summit is an important opportunity to demonstrate PDBs’ concrete ability to guarantee coherence, continuity and engagement on the commitments made on climate, sustainable development and health last year and reinforce their determination in implementing the defined actions.
- Explore the theme of agriculture, agribusiness and food systems financing, which sits at a critical intersection of issues that must be addressed to achieve the 2030 Agenda and the Paris Agreement, representing:
- a major source of productive livelihoods, particularly in emerging economies,
- a source of job-rich economic growth,
- a contributor to public health (through improved nutrition),
- an entry-point for the protection of biodiversity and addressing climate change.
PDBs have crucial role to play in bridging the considerable financing gap in the food economy. This can be achieved by enabling investments that combine public and private goods, by increasing and re-directing financing to more sustainable and inclusive outcomes and by crowding in and de-risking private sector resources. A greater level of coordination, amongst PDBs, private sector and other stakeholders through FiCS, can enhance the efficacy of PDBs in filling this unique role in the broader food/agriculture financing architecture. In particular, during this year in which the urgency of this issue is at the top of the global agenda as a key theme of the UN Secretary-General’s Food Systems Summit and the G20 Summit, a spotlight on the catalytic role of PDBs in investing in this sector can strongly link the PDBs initiative with development and climate financing international deliberations.
- Strengthen FiCS coordination with the G20, COP 26 and other international fora of interest that have a crucial role in setting the path for the future of global economic recovery. Hosting 2021 FiCS in Italy in conjunction with the Italian Presidency of the G20 offers a unique opportunity to attain FiCS recognition as the global framework organizing the international debate of financial institutions and PDBs on sustainable and climate finance. Having the FiCS back-to-back with the G20 Leaders’ Summit will allow the Finance in Common Coalition to convene PDBs from around the globe to contribute to the G20 debate and to its final decisions, including actions to be taken to foster a sustainable economic recovery and shape the new international financial architecture. Likewise, the COP26 led by UK in co-partnership with Italy will provide the opportunity to reinforce a joint commitment in support of common actions for climate and sustainable development.
- Explore other specific issues that are particularly relevant for a sustainable and equitable Covid-19 recovery including climate, health and alignment of international flows on export and trade finance for the achievement of the UN 2030 Agenda.
The second edition of the FiCS aims to deliver the following outcomes:
- Expected deliverables from the first edition and FIC progress (monitoring reports, additional commitments, governance, progress on PDBs database)
- Launch of a Public Development Bank Initiative to Catalyze Green and Inclusive Food System Investments through a potential forum and platform for knowledge-sharing, technical assistance, and engagement around impact metrics and measurement. This solution is currently under discussion and will be developed during the course of the year in the context of the Food Systems Summit. The platform will ideally be associated to other voluntary commitments related to food and agriculture from the PDBs’ community.
- Production of new research papers written by economists and experts from the academic community. These papers will be shared during the Summit and introduced by a foreword from the CDP-Think Tank. Each research paper will be presented and used as starting point to stimulate discussion sessions among authors, representatives of Public Development Banks and other participants. In these papers, authors will investigate how the private sector is adapting to climate change as well as the catalytic role development banks are playing in promoting a more innovative and sustainable agri-food system. They will advance knowledge and inform practice in key, catalytic areas.
The event included an opening session, multiple high-level panels that will focus on specific themes, and other plenary sessions. The opening meeting provided a chance to present the objectives of the second edition, reinforcing the role of the PDBs and consolidating the commitments of the FiCS coalition toward a coordinated and cohesive set of actions. The high-level panels offered the opportunity to explore further the role of PDBs and their stakeholders in supporting a sustainable transition consistent with the achievement of the UN 2030 Agenda.
A specific session was devoted to discussing research findings and share insights on the most recent trends and challenges that advanced economies and developing countries are facing in making the agri-food system more sustainable, both from an economic and a financial perspective.
Various sessions helped deepen the dialog between the PDBs coalition and other stakeholders, notably Central Banks and private investors – taking stock of the various ongoing initiatives in the field of blended finance and sustainable investment –, as well as with Civil Society or Local Authorities.