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 G20 Finance in Common (FiCS) Joint Event 20 & 21 May 2024, Rio de Janeiro

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A joint event

The event was organized jointly by the G20 Presidency, the Brazilian Development Bank (BNDES), Instituto Clima e Sociedade (iCS) and Finance in Common (FiCS), to discuss synergies between the G20 and FiCS agendas, to better position the role of Public Development Banks (PDBs) in the global financial architecture and integrate their strategies and operations under the G20 framework.

The event gathered around 400 participants, out of which approximately 35 public development banks (multilateral, regional, national and subnational) which, taken together, operate in almost all the countries in the world, as well as think-tanks, international organizations, philanthropies, credit rating agencies, insurers, CSOs and private sector representatives.

More specifically, PDBs from 11 G20 members were represented, to share knowledge and experiences with their peers. Since 2021, FiCS has been recognized by G20 Finance Ministers and Central Banks Governors.

It has notably delivered a Progress Report in 2022, contributes to the implementation of the G20 Sustainable Finance Roadmap and its G20 Technical Assistance Action Plan, as well as to the activities of select Working Groups. The FiCS 2023 Summit also hosted a specific session with a presentation of G20 priorities by the Brazilian government.

Watch the summary video

Summary video

KEY HIGHLIGHTS FROM THE OPENING SESSION

KEY HIGHLIGHTS FROM THE OPENING SESSION

  • Strong synergies between the G20’ and PDBs’ agendas, as Brazil strives this year to advance concrete solutions for sustainable finance, the fight against inequalities, and the reform of the global governance, as well as the leadership from the rich financial ecosystem of development finance in Brazil
  • Underline the role of the G20 to further mobilize Public Development Banks and their partners, to work more efficiently and systematically. The integration of PDBs into macroeconomic policies, empowering regional, national and subnational development banks alongside MDBs, and a more active role within the international financial architecture, were notably emphasized

Solutions being deployed by FiCS:

  • FiCS Financial Innovation Lab: Launched in Rio together with the Inter-American Development Bank and Climate Policy Initiative, the FiCS Lab is now operational. It will now advance knowledge-sharing and incubation programmes on four priority areas: Climate Resilient Debt Clauses; Debt for Nature Swaps; Domestic Carbon Markets and Currency Risks
  • Knowledge-sharing and capacity building for sustainable finance: a focus on the IDFC Facility, the initial results from an upcoming FICS benchmark study on Technical Assistance, and a PDBs Handbook to provide insights into the role of PDBs in the international financial architecture, emphasized the transformative power of technical assistance.
  • Coalition on SDG Alignment: Aiming to mainstream sustainable development investment principles among FiCS members and beyond
  • Road to the FiCS 2024 Annual Summit and contributions of PDBs to the international agenda, from the Financing for Development Forum in Spain up to COP30 in Belem

KEY TAKEAWAYS AND RECOMMENDATIONS BY THE FICS CHAIRMAN TO THE BRAZILIAN PRESIDENCY OF THE G20

  • 1. Enhanced Role of Public Development Banks

    o   Sustainability focus: PDBs, with assets around USD 23 trillion, are essential in reorienting finance towards sustainability and supporting the Paris Agreement and Agenda 2030.

    o   Countercyclical Impact: PDBs can counteract economic downturns and bridge gaps between public mandates and private sector engagement.

    o   Taxonomies: to better measure the impact of what we do for the countries and global public goods

  • 2. Global Financial Architecture Reform:

    o   Inclusion of all PDBs of all types and levels: articulation between international, regional, national and subnational development banks key to scale up sustainable finance

    o   Country platforms: Strengthening NDBs to ensure alignment with national priorities and enhance local ownership of development initiatives.

    o   Capital Adequacy and Optimization: Reviewing capital adequacy for PDBs to enhance their impact and efficiency in leveraging resources.

  • 3. Concessional and Innovative Finance for Climate and Biodiversity:

    o   Nature-Based Solutions: Emphasizing global collaboration to bridge knowledge gaps and advance nature-based innovations

    o   Climate Funds and Project Accreditation: Streamlining access to climate funds and supporting PDBs in meeting accreditation requirements for impactful projects, to unleash money that is already there

  • 5. Scaling Local and Subnational Finance:

    o   Focus on the last mile: subnational financing for the SDGs (including with municipalities, regions, and other local actors)

    o   Green Cities Guarantee Fund: Proposing a fund to support cities in accessing finance for sustainable urban projects.

    o   Technical Assistance for Cities: Providing comprehensive support for cities to develop and execute sustainable finance projects. example of NUCA program

SOME WORDS FROM RÉMY RIOUX, CHAIRMAN FICS

SOME WORDS FROM RÉMY RIOUX, CHAIRMAN FICS

Our mobilization today in Rio de Janeiro - a city strongly committed to sustainable finance - is a testimony of our collective willingness to be useful, and share solutions and ideas that we could implement together in the future.  The Brazilian Presidency of the G20 can count on our full support and willingness to make sustainability the new norm of finance.