Accessing MDBs and Global Finance for Development and Green Growth

NITI Aayog, in partnership with the Indian Council of Research on International Economic Relations (ICRIER), organised a workshop to facilitate discussions and actions to strengthen the Multilateral Development Banks (MDBs) to leverage greater official and private capital for inclusive and sustainable development, on November 9, 2023, in New Delhi.

The workshop provided a unique opportunity for industry professionals, academics, experts, and civil society representatives to collaborate in designing a roadmap to strengthen Multilateral Development Banks (MDBs) for inclusive and sustainable development.

The workshop, consisting of three sessions aligned with the G20 New Delhi Leaders Declaration (NDLD), aimed to develop actionable strategies. The first session, ‘Making MDBs Accountable, Efficient, and Responsive,’ advocated for a transition from isolated projects to government-led programs using “Country Platforms” to enhance collaboration with investors. The second session, ‘Implications for a Strengthened and Larger MDB System for India,’ focused on tripling MDB lending volumes by 2030, balancing private investment and national priorities. The third session, ‘Reorienting MDBs to Leverage Greater Private Capital for Green Investment,’ explored reforms to engage with the private sector, including using CSR funds and involving financial regulators like RBI and SEBI.

Participating at the workshop, Nidhi Madan, Associate Director, Climate Policy, Shakti said, “A hybrid model, integrating philanthropic and private resources, has the potential to be a game-changer in reforming Multilateral Development Banks (MDBs) to address the climate financing gap and facilitate India’s energy transition. MDBs can play a crucial role by spearheading the design of innovative projects, fostering the capacity building of private investors, and reinforcing transparency and accountability mechanisms.”