Search Results (10)

In April 2024, a hybrid meeting organized by the WHO, PAHO, and MPP during the World Bank Spring Meetings focused on financing mRNA-based technologies in Low- and Middle-Income Countries (LMICs). This meeting sought to engage multilateral development banks (MDBs) and stakeholders in financing the expansion of vaccine production and enhancing pandemic preparedness. The COVID-19 pandemic underscored the disparities in vaccine production and distribution, highlighting the need for localized production to improve global health equity. The WHO’s mRNA Technology Transfer Programme, initiated in 2021, aims to build local capacity for mRNA vaccine development and manufacturing. Key sessions covered during the meeting include innovative investment models, with MDBs discussing funding instruments and the necessity of an integrated ecosystem for sustainable vaccine manufacturing. Challenges such as technological risks and the need for higher risk appetite were addressed, along with innovative financing mechanisms like blended financing. An analysis of capital and operational expenditures for mRNA vaccine facilities was presented, projecting significant production capacity in LMICs within a decade. Panelists emphasized the need for sustainable R&D investment and shared experiences in securing funding for mRNA technology. The meeting underscored the importance of collaboration, innovative financing, ecosystem development, and public–private partnerships, marking a pivotal step towards advancing mRNA technology in LMICs to tackle global health challenges. Full article

In an era where sustainability is paramount, this study critically assesses how multilateral development banks (MDBs) integrate internationally recognized sustainability indicators into their ESG safeguard policies. MDBs have historically incorporated policies to manage environmental and social risks in project financing; yet, protections against negative impacts in developing countries often remain insufficient. On the other hand, several infrastructure sustainability rating systems have been established around the world in recent decades due to economic growth and the importance of controlling environmental impacts associated with the construction sector. The purpose of this study was to analyze whether and how the indicators that these internationally recognized systems use to rate whether a project is sustainable are integrated into these safeguards by using several methodologies, including an analysis of existing documentation, a high-level matrix, and qualitative methods based on co-occurrences using specialized “atlas ti” software. The results show that MDBs’ coverage of financial, governance, and country risks lacks the sustainability focus found in these rating systems. Therefore, this study that concludes MDB safeguards must evolve, balancing comprehensive sustainability parameters and detailed management guidelines and addressing impacts beyond statutory frameworks to encourage stakeholder engagement for more sustainable infrastructure projects. Full article

South Asia is the most vulnerable region in the context of global warming, climate change, and climate risk. Climate finance is the most useful tool for combating climate challenges worldwide. The study explores the present picture of climate finance in South Asian (SA) countries. The study uses multilateral development bank (MDB), Green Climate Fund (GCF), and Germanwatch supplied data from 2011 to 2021. Under the theoretical lens of institutional capacity development, the study attempts to correlate climate finance and climate risk. The study indicates an increasing trend of MBDs’ and the GCF’s climate finance in many countries worldwide. The study finds that MDBs’ total global climate finance is USD 446,977 million, while the SA region has received USD 59,301 million since 2011. It also reports that MDBs provide 77% and 23% of the money to the mitigation and adaptation areas. Moreover, the study reports that, after COVID-19, MDBs substantially increased the amount of global climate financing, but this increase was not seen in the SA region. Our climate risk data indicate that most of the SA countries are highly long-term climate risky and lose, on average, 0.378% of GDP. The correlation matrix finds a negative and significant correlation between climate finance and long-term and yearly climate risk. The study identifies that the region’s climate financing flow of money is not rationally distributed based on the short-run and long-run climate risks. The study presumes that more climate finance would be the most effective mechanism to mitigate climate risk. Therefore, SA region leadership drastically requires a holistic framework to address the prevailing climate problems and to ensure regional coordination and cooperation toward climate finance and policies. The research findings have significant implications for climate policy and climate finance. Full article

Graduate students often seek hands-on experiences in the international development field. Given that Multilateral Development Banks (MDBs) provide hundreds of billions of dollars in aid each year, we expected that reviewing the design, implementation, and outcomes of their environmental projects would provide valuable learning outcomes for students. This novel study on Nature-based Solutions (NbS) in the Global Environment Facility (GEF) gave students the opportunity to engage directly with practitioners in the review of 50 environmental projects across 45 countries. A team of professionals from the Scientific and Technical Advisory Panel (STAP) of the GEF and eight students from the University of Michigan School for Environment and Sustainability and the University of Maryland School of Public Policy developed lessons learned from reviewing the GEF portfolio over a twenty-year time span. When screening projects for enabling conditions including theory of change, climate risk screening, multi-stakeholder engagement, and adaptive management, most had stronger explanations of the environmental than the social outcomes sought, and only more recent ones incorporated climate risk screening. The process and findings associated with this educational experience contributed to students’ climate change leadership development; for example, by learning about the tradeoffs and possible co-benefits of improving both environmental conditions and livelihoods in less developed countries. Our research led to practice advice for the design of future GEF projects, as well as ideas for future coursework to further bridge the gap between theory and practice in academia, which we believe to be essential to preparing the next generation of climate leaders. Full article

This article applies ‘macro’ legal analysis to the challenge of legal reform related to corporate responsibility for human rights violations and degradation of the environment. It recognises that the approaches from different communities of lawyers to the negative impacts on human rights and the environment caused by companies, sometimes operate in isolation from each other, are not always mutually supportive, can lead to a fragmentation of effort, and may not address the root causes of the problem. In particular, this article analyses the extent to which existing approaches tend to address symptoms of the issues, rather than the root causes themselves. It makes the case that in this regard specific root causes exist within the frameworks of corporate law in all jurisdictions and various aspects of international economic law too. To carry out the study, it employs macro legal analysis, a methodology not previously applied in this field, as a means of developing an understanding of the legal frameworks that, it argues, influence corporate decision making that can affect human rights and the environment. It undertakes an analysis that incorporates relevant corporate law, World Trade Organisation (WTO) law, international investment law, the law relating to multilateral development banks (MDBs), and international insurance law. By using this form of anlaysis it is possible to show how legal frameworks can operate in unison, reinforcing each other providing a cumulative effect that can influence corporate decision makers. Finally, based on the results of the analysis, it suggests a possible strategy of macro-level reforms that could be applied to the re-design of relevant legal frameworks to better facilitate the full protection of human rights and to achieve net zero degradation of the environment. As a result it seeks to demonstrate how this approach can be strategically applied by both human rights and environmental lawyers as a common pathway towards effective legal reform. Full article

This paper aims to provide empirical evidence for demonstrating financial additionality of multilateral development banks (MDBs) in private participation in infrastructure (PPI) projects in terms of financing beyond what is available in the markets. To verify MDB financial additionality, this study examines whether the PPI projects with multilateral support have significantly larger investment commitments than the total average projects by using the PPI database of the World Bank for 1996–2020. The empirical analysis identifies MDB financial additionality, in that the larger investment commitments of multilateral-supported projects beyond the average are confirmed in any income levels and regions in host countries and any sectors and types in the projects. In particular, MDB financial additionality is valid even in low-income countries where private finance is still too premature to be available. In the host countries where their government effectiveness is in the poorest edge, however, MDB financial additionality loses its significance, thereby requiring the governance enhancement and capacity building in the host countries and innovative blended finance instruments for its additionality to work. Full article

To effectively mitigate global greenhouse gas emissions, both industrialized and developing countries should participate in the energy transition that to replace fossil fuels with renewable energy. Multilateral development banks (MDBs) have been scaling up their renewable energy finance to developing countries to help them achieve their renewable energy targets. This study examines the evolution of energy financing of the World Bank, the oldest and largest MDB, by reviewing and estimating its sector-specific energy investments made over the last 35 years (1985–2019). The results confirm that the World Bank is on the right track supporting energy transition in developing countries, overall; however, limitations exist. While the share of investments in non-hydro renewable energy (NHRE) in the World Bank’s total energy finance was expanded from 1% (1985–1990) to 16.5% (2011–2019), the share of fossil fuels contracted from 51.8% (1985–1990) to 15.2% (2011–2019). However, commitments to fossil fuels have been sustained, but financing for NHRE—US$1.2 billion per year after the adoption of the Paris Agreement—is still insufficient to meet demand. Moreover, NHRE finance tended to be concentrated in middle-income developing countries. To accelerate the energy transition in developing countries, the World Bank needs to increase NHRE finance with more support for low-income countries while reducing fossil fuel finance. Full article

The Paris Agreement has been celebrated as a breakthrough for international climate policy. However, relatively scant attention has been given to the emergent ecosystem of climate finance facilities that support it. We provide an overview of the rising number of climate-related trust funds at multilateral development banks (MDBs). These funds can be distinguished into mitigation funds and adaptation funds. Some funds have a focus on capacity building activities. To maximize their effect on sustainable development, the different types of funds should follow different resource allocation criteria: For adaptation funds, vulnerability should represent the primary criterion. For mitigation funds, the main criterion should be the emission reduction potential. Capacity building should primarily focus on countries with weak institutions. Using a novel dataset of disbursements of climate-related trust funds, available for the World Bank, we examine whether fund allocations correspond to these expectations, and compare them with those of bilateral donors. We find that while trust funds with a focus on mitigation generally allocate aid in line with efficiency considerations, trust funds with a focus on adaptation do not seem to prioritize the countries most strongly in need, contrary to bilateral aid. Furthermore, capacity building activities do not seem to focus on countries with weak institutions. These findings have important implications for the effectiveness and legitimacy of climate aid to developing countries. Full article

This article explores the role of multilateral development banks (MDBs) in originating norms of sustainable banking that have attracted and supported green private finance, a role not widely known in the management literature. Any prospect of achieving the United Nations (UN) Sustainable Development Goals by 2030 presupposes mobilizing the estimated US$23.3 trillion currently locked-up in risk-averse private savings to bridge the gap between developing countries’ demand for capital and the current global financial architecture’s capacity to supply it. The three biggest obstacles to sustainable banking identified by the authors are discussed: (1) The uncertain bankability of projects; (2) non-transparency in tracking sustainable capital flows; and (3) no universal mechanism capable of making matches between green investment supply and demand; and what MDBs have actually done to overcome these roadblocks, and might do in future, is also discussed. Seen through the lens of “applied constructivism”, MDBs are revealed to be norm entrepreneurs proactive since at least the 1970s in socially constructing most of the basic norms and practices of sustainable banking which the private sector relies on or is now striving to take up. MDBs are typically the first “port of call” for international governmental organizations (IGOs) and civil society organizations wishing to establish a sustainable financial framework for development; and are the likeliest political agents to pioneer sustainable banking in future. MDBs would do well to develop an awareness of the methods of Constructivism, which they have actually been unwittingly using, to empower themselves to meet the challenges of the 21st century. Full article

This paper looks at the current state of multilateral development banks (MDBs) for climate change measures and the funding status of those invested in mitigation technology in order to briefly review the current outcome of the technology transfer and financial support. In other words, the aim of this study is to collect and analyze information about the current status of total investment in the field of technology for mitigating GHGs (Greenhouse Gases) from MDBs and identify implications of the status. In this study, a screening technique has been used three times to make a database for project information in the field of mitigation of climate change. So far, based on the finalized DB (Database), mitigation technology projects supported by MDBs have been investigated; based on the result, a connected analysis has been conducted between MDBs, mitigation technology, and countries. According to the derived current status, project support in renewable energy and energy demand areas turned out to be the highest at 75% of the entire mitigation technology. Rather than the renewable energy and energy demand areas where climate technology projects have frequently been performed throughout the world, it was confirmed that long-term climate technology projects for GHG fixation were being performed. According to the results of comparison and analysis of countries with high GHG emissions and their centrality, centrality turned out to be high in the field of GHG fixation in China, the country with the highest GHG emissions. This seems to indicate that countries emitting a substantial amount of GHGs will invest more on projects in the field of GHG fixation as well as on projects on renewable energy. Thus, this study is expected to contribute to understanding the trends of climate technology projects for coping with climate change and using them in establishing future policies on climate technology. In addition, it is expected to be used as a reference for countries with insufficient investment in climate technology despite the high Climate Risk Index (CRI). Full article