RIO DE
JANEIRO, May 22, 2024 /PRNewswire/ -- Finance in
Common (FiCS), the Inter-American Development Bank (IDB), and
Climate Policy Initiative (CPI) launched the FiCS Financial
Innovation Lab (FiCS Lab), a new global
platform to help public development banks in emerging markets and
developing economies to mobilize private capital and expand climate
finance.
The launch took place during the first FiCS-G20 joint Rio event,
organized together with the Ministry of Finance of Brazil, FiCS, and Instituto Clima e Sociedade
(iCS), to explore the synergies between Public Development Banks
and the G20.
Tailored to the needs of public development banks (PDBs), the
FiCS Lab will combine the roles of an incubator and a task force,
providing technical assistance and grants as well as fostering
innovation, knowledge sharing and collaboration among PDBs. These
activities are aimed at helping PDBs address barriers to financing
climate mitigation and adaptation.
The planned activities are:
- Pillar 1: Sharing and advancing knowledge and best
practices on financial innovation gaps, initiatives, and
implementation.
- Pillar 2: Facilitating structured dialogues to
standardize or harmonize approaches.
- Pillar 3: Supporting incubation of specific financial
innovations in institutions that are ready to act but need
technical and/or financial support.
Following the launch, members will come together via working
groups to support the first two pillars, tackling four
workstreams:
- Climate-resilient debt clauses
- Debt-for-nature/climate swaps
- Domestic carbon markets
- Currency risks
Pillar three will result in a competitive call for ideas from
public development banks, which will be opened at the FiCS Summit
in October. The selected ideas will receive dedicated technical and
grant support from CPI, which will also act as the initiative's
secretariat, to facilitate development from inception to
implementation.
FiCS Lab was one of the main commitments agreed by FiCS
members during the 2023 edition of the FiCS Summit in Cartagena,
Colombia. It was officially
announced during COP28 in
December 2023 and included in the
FiCS 2024 action plan. This initiative is supported by the
Children's Investment Fund Foundation (CIFF).
CPI manager Nicole Pinko, who is overseeing the
initiative, said: "Achieving the USD 9
trillion in climate finance needed by 2030 will depend
greatly on effective action by PDBs. With input from multiple PDBs,
the FiCS Lab is designed to facilitate climate action in emerging
markets and developing economies, creating a shared understanding
of available instruments and principles for their effective use.
Through collaboration and the FiCS Lab support services, we aim to
overcome existing challenges to PDB investments in climate
action."
Adama Mariko, Secretary
General of FiCS, said: "The FiCS Financial Innovation Lab is now up
and running. I invite all public development banks – multilateral,
regional, national, or subnational – to use it as a dedicated space
to share knowledge, facilitate peer-to-peer learning, and incubate
pilot innovations that are critical to scale up climate
finance."
Anderson Caputo, chief of
the IDB's Connectivity, Markets and Finance Division, said: "The
FiCS Lab will allow public development banks to join forces to find
financial solutions through innovation and experimentation.
Together, we are stronger, and by working collaboratively to tackle
global challenges, we will be able to find pioneering and
replicable solutions to achieve greater impact and scale. The
window of opportunity to address climate change is narrowing, and
we need new approaches to bridge climate action investment
gaps."
Next steps
To complement the launch, a promotional roadshow to foster PDBs'
engagement will bring the FiCS Lab to PDB audiences at regional
fora for development banks throughout 2024, including the Latin
American Association of Development Financial Institutions (ALIDE),
the Association of African Development Finance Institutions
(AADFI), and the Association of Development Financing Institutions
in Asia and the Pacific
(ADFIAP).
About Finance in Common
Finance in Common is the global network of all PDBs, which aims
to align financial flows on the 2030 Agenda and Paris Agreement for
Climate Change. Its objective is to strengthen partnerships among
PDBs to accelerate the convergence towards shared standards and
best practices, to support banks' commitments to shift their
strategies towards sustainability, and to give PDBs more visibility
in the global fora discussing international policy
issues. Learn more at financeincommon.org
About the Inter-American Development Bank
The Inter-American Development Bank is devoted to improving
lives. Established in 1959, the IDB is a leading source of
long-term financing for economic, social, and institutional
development in Latin America and
the Caribbean. The IDB also
conducts cutting-edge research and provides policy advice,
technical assistance, and training to public- and private-sector
clients throughout the region. Learn more at
https://www.iadb.org/en.
About Climate Policy Initiative
Climate Policy Initiative is an analysis and advisory
organization with deep expertise in finance and policy. Our mission
is to help governments, businesses, and financial institutions
drive economic growth while addressing climate change. CPI has over
100 employees across six offices in Brazil, India, Indonesia, the United Kingdom, and the United States. Learn more
at climatepolicyinitiative.org.
Media contacts
Kirsty
Taylor Snr Communications
Associate,
CPI Kirsty.taylor@cpiglobal.org
|
Gwladys Le
Roy
Communications Officer, FiCS
leroyg.ext@afd.fr
|
Vanessa
Molina
Communications Specialist, IDB
vanessamo@iadb.org
|
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