The IDFC Pavilion is now over

The ongoing reform of the international financial architecture is placing PDBs in the spotlight as key players in helping mobilise and channel resources towards a just and orderly transition in line with country priorities. Yet, to leverage their value-added, collaboration is needed at national and international level. There has been little inter-PDB cooperation on climate finance to date and several differences between international and domestic PDBs have hindered their alignment and collaboration on financing the Paris Agreement goals.

Complementary taxonomies, country platforms, and strengthening capacity-building and knowledge-exchange initiatives can be pivotal to strengthening PDBs activities that are aligned with national priorities.

In particular, country platforms are increasingly being seen as part of the solution to catalysing different sources of finance and supporting the alignment of international financial flows with national priorities and climate objectives.

This event highlights several key mechanisms/actions which can be instrumental to improve the country-level impact of international climate and development finance, and the associated conditions for success.

The session aims to explore the critical interlinkages between the International Financial Architecture (IFA) reforms and the New Collective Quantified Goal (NCQG) for climate finance, particularly in the context of emerging markets and developing economies. The objective is to foster a deep understanding of how ongoing reforms to global financial systems can be leveraged to enhance the quality and quantity of climate finance, ensuring alignment with the Paris Agreement goals.

The session will:

• Examine the current progress and challenges in IFA reforms, including PDBs, debt relief mechanisms, international taxation, and levies, and how these can contribute to climate finance.
• Discuss the NCQG negotiations and its potential that address the climate finance quantum and sources, including public, private, and mobilized finance.
• Analyse how the PDB ecosystem can contribute to the NCQG and disseminate mechanisms like debt-for-climate swaps, Special Drawing Rights (SDR) rechannelling, and other innovative financial mechanisms in a reformed global financial architecture.

The objective is to allow supporting institutions to learn from each other’s respective experiences with Paris alignment and latest research on how to improve their Paris alignment.

The objective is to share new insights on the nexus Trade & Development, in particular opportunities for PDB to design program in concertation with international brands and retailers.

It is now recognised that climate change and biodiversity loss are deeply interlinked and need to be addressed together. This is particularly true because biodiversity is part of the solution to halt global warming. The event will examine the significance of biodiversity, the connex of the two and the role funding plays in countering nature loss as a means of climate mitigation. It also looks at possibilities to combine the two, with a view to maximise co-benefits and minimise trade-offs.

Small and Medium-sized Enterprises (SMEs) play a critical role in driving economic growth and employment globally. However, from an aggregate perspective they also contribute significantly to carbon emissions, which impacts climate change efforts. Public Development Banks (PDBs) are uniquely positioned to support SMEs in adopting sustainable, low-carbon practices through innovative financing, capacity-building initiatives, and technical assistance. By providing tailored solutions, PDBs can empower SMEs to transition towards greener business models, reducing their environmental footprint while enhancing resilience and productivity.

At COP29, this panel will gather leading PDBs to explore strategies for enabling and accelerating SME decarbonization. The discussion will underscore the importance of public-private partnerships, sharing of best practices, and tailored financial mechanisms to foster green transitions among SMEs worldwide.

Joining forces to support the global development and transformation agenda.

Get the CEOs’ perspective on transforming leading development banks into sustainable and resilient institutions able to react quickly in the face of multiple crises, the New Collective Quantified Goal (NCQG) on Climate Finance and at the same time able enhance private capital mobilisation.

This session will look both into institutional transformation as well as into innovative product offerings enhancing resilience and driving transformation – in response to climate change as well as to the multiple other crises we’re currently facing.

This high-level side-event will be the opportunity to present IDFC contributions to Climate finance, in particular the Green Finance Mapping 2023, and to illustrate the role of public development banks to achieve Paris Agreement alignment.

IDFC also aims to promote the role of public development banks and to contribute to the international agenda and debates on climate, for instance on the New Collective Quantitative Goal (NCQG) or on the different approaches for financial institutions to align on the Paris Agreement.

Objective

Based on an overview of IDFC main deliverables this year, this side-event will explore ideas to go beyond in the coming years to meet Paris Agreement Goals. What IDFC can bring to the post-2025 agenda?

The aim of this event is to share feedback on project implementation challenges to improve the deployment of GCF resources.

Panelists will present their different experiences and lessons learned from the implementation of projects financed by climate funds.

Fostering collaboration among financial stakeholders, and collectively working on a better and differentiated characterization of financial flows according to their qualitative contribution to the above challenges (“traditional” climate finance, Paris-aligned finance, transformational finance for climate) are also essential.

The event will interactively discuss all of the above and sketch next steps for the continuation of a whole-of-finance effort towards its systemic transformation for low carbon and resilient sustainable development.

This session will explore the operationalization of Article 6 of Paris Agreement, focusing on innovative market mechanisms that can enhance climate finance, including carbon credits. PDBs (Public Development Banks) as enablers can provide financial and technical support to foster Article 6 projects, acting as a bridge between government policy and private sector engagement.

The session will present frameworks and financial instruments (e.g. blended finance, loan guarantees) needed to support Article 6 implementation and the issuance of carbon credits. The discussion will also cover the co-benefits integration of sustainable development goals, transparency mechanisms and capacity building to ensure efficient and reliable carbon markets, based on practical examples of projects enabling and allowing the issuance of carbon credits and the inclusion of institutional framework for carbon markets.

On February 6, 2023, two earthquakes, among the most devastating of the 21st century, struck the South-East of Türkiye, affecting 17 provinces, causing more than 50,000 victims and collapsing more than 200,000 buildings. Total financial burden of the disaster is estimated at USD 103.6 billion.

As part of the mobilisation of international aid, and relying on their long-term partnership within IDFC, TSKB, AFD and CDP proposed to support the region’s industrial sector While evaluations of the damages highlight the dramatically deleterious impact of earthquakes on long-term economic prosperity; they also identify “green infrastructure investments” as a priority in the reconstruction phase in order to support Türkiye’s sustainable and low-carbon development trajectory.

The side-event will present the genesis of an IDFC collaboration in an emergency context, which allowed TSKB to mobilise 100 M EUR for a green reconstruction in the earthquake region.

The main objective of the event is to review the objectives of the NDCs and the participation of BOAD and development stakeholders in financing these strategies for the WAEMU zone, in order to examine the level of resources actually mobilized in relation to the ambitions expressed.

The event will bring together political decision-makers, partner organizations coordinating the NDCs, climate experts, the private sector and civil society organizations keen to include their actions in the national NDCs.

Objective of this session is to discuss how PDBs and Insurers/ReInsurers can better combine their expertise and tools to strengthen resilience and contribute to close the protection gap in the global South.

The session, among others, could showcase (i) some de-risking solutions implemented by the insurance industry together with MDBs/PDBs, (ii) some default protection mechanism under implementation (such as the shock resilient loan solution put in place with BOAD/KFW and Munich Re), and (iii) the IDRIMA initiative (between IDF & AFD) to stimulate opportunities for adequate and comprehensive solutions offered to SOEs and PBDs.

The aim of this event is to review experiences of collaboration with other climate funds.

Panelists will present their different experiences and lessons learned in working with climate funds to mobilize resources through project implementation.

This session aims to foster discussions on financing mechanisms to facilitate a just transition towards carbon neutrality, primarily in Asia. We will explore the concept and importance of a just transition, the current state and challenges of decarbonization in Asia, financing needs and opportunities, and case studies.

In this context, financing not only climate solution but also high-emitting sectors / Hard-to-Abate sectors is important in order to accelerate whole society decarbonization. Engagement with clients is also critical. Given the fast-growing economy in Asia, this discussion is crucial for the common goal of achieving the net-zero.

The aim of this event is to review the technologies dedicated to the spatial monitoring of land use in the context of the promotion of the AIC, and to disseminate the maps produced on the evolution of the agro-ecological zones of the five (05) countries in West Africa in the context of the Regional Project for the Promotion of Climate Intelligent Agriculture financed by the Adaptation Fund with the support of the BOAD, as the Accredited Entity and the collaboration.

The objective of this event is to examine the scale of financing required for a just transition in the power sector, using Mexico—where reliance on unabated fossil gas is significant—as a case study. The session will also explore the challenges development banks face in providing transition finance and their role in innovative solutions, such as country platforms, to scale up financing and improve coordination among key stakeholders.

The side events focus on exploring innovative financing mechanisms for climate-resilient infrastructure development. It will bring together policymakers, investors, development banks, and experts from around the world to discuss the challenges and opportunities in financing sustainable infrastructure projects. Key topics will include public-private partnerships, green bonds, blended finance, and climate-smart investments. It aims to foster collaboration, knowledge sharing, and the development of concrete strategies to accelerate the transition to a more resilient and sustainable future.

Rigorous standards of consistency, transparency, and accountability in the tracking of green finance are vital for IDFC members as they strive to amplify their green investments. IDFC members contributed over a third of global public climate finance in 2021/2022 and have provided more than USD 1.5 trillion since the adoption of the Paris Agreement in 2015.

As members look to further expand their mitigation, adaptation and biodiversity financing, the Common Principles provide a framework for high integrity tracking. Climate Policy Initiative (CPI) has been working with the IDFC to develop materials to deepen members’ understanding of the principles of climate finance tracking, streamline their tracking processes through tools such as decision trees, and address related challenges.

This event will build on the meetings, workshops and publications that have flowed from this capacity building partnership and will create space for a wider discussion on the following:

1. The importance of robust tracking methodologies and their relationship with DFI transparency and accountability

2. Lessons learned from early efforts to integrate Common Principles into IDFC member tracking

3. Future areas for methodology improvement

Climate change is one of the most pressing issues of our time, with far-reaching consequences for human societies and natural ecosystems, including infrastructure development. As the world works to reach climate and sustainability goals for every global citizen, the need for essential infrastructure services continues to grow.

Infrastructure development is a critical component of climate change mitigation and adaptation strategies especially in the context of ensuring that such infrastructure is sustainable. However, traditional infrastructure development often neglects the importance of natural ecosystems and their role in supporting human well-being and climate resilience.

This session will explore how sustainable and nature-positive approaches to infrastructure development can deliver long-term economic, social and environmental benefits, and contribute to climate and nature action.

The event entitled “Forum on Building Climate-Resilient Economies: Synergistic Partnerships to Support Vulnerable Groups” has as its main objective to promote climate-resilient economies through the creation of synergistic partnerships and innovative approaches. It focuses on how financial and technological tools can support vulnerable communities in the face of climate change.

The discussion intends to assess the importance of the GHG accounting in tracking GHG emissions and the presentation of the IDFC CarboMeter tool that will be offered to IDFC members. During the event, some of the tool testers, IDFC members, will present their experience in using and testing the tool.

Financial institutions are important players towards resilience against climate impacts through the integration of climate-related risks into their frameworks and strategies. This event intends to: i) highlight recent findings on climate risk management relevant to financial institutions, ii) foster experience sharing on how financial institutions can work together for better climate risk management, and iii) support the identification of financial instruments that adapt to the risks financial institutions’ counterparties might be facing.

This event will ultimately help financial institutions better contribute to addressing global climate risks, target their assistance to increase resilience in local economies, going further beyond risk disclosure.

In a landmark moment for the global energy transition, the 28th Conference of the Parties (COP28) to the United Nations Framework Convention on Climate Change (UNFCCC) agreed to transition away from fossil fuels, triple renewable power and double energy efficiency by 2030.

What solutions can development banks provide to boost the global energy transition?

Cities generate around 70% of the global greenhouse gas emissions and are highly vulnerable to climate change. National development banks (NDBs) are well positioned to support cities’ climate-smart infrastructure projects – they often have long-standing relationships with local public and private sectors, can provide local currency funding at attractive financial rates and usually also offer support in the form of guarantees or grants for technical assistance.

Each of the below mentioned banks, will be invited present the efforts that they are making in order to systematically improve their institutional readiness for financing and advising on urban low-carbon and climate-resilient infrastructure with the objective to increase their financing commitments with climate benefits, thereby unlocking further financing from a range of local/international private and public sources.

The exchange between NDBs in international fora with diverse stakeholders is crucial to foster change at scale. Additional PDBs (eg. FiCS members) from other than the 5 emerging economies participating in the NUCA programme are also likely to gain from knowledge exchange if their circumstances and challenges regarding urban climate finance are similar to the ones encountered by the panelists.

The objective of the session is to present the latest research from think tanks and international organizations on the potential role of financial intermediation in achieving the Paris Agreement objectives.

The 6th Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) – Working Group II on Impacts, Adaptation, and Vulnerability includes more references to gender, equity, and justice than any previous IPCC report. This evidence is needed by policy-makers and practitioners working to advance climate change adaptation; however, the length and technical nature of the IPCC reports make it difficult to capture and apply the key messages. In this session, IPCC authors, researchers, practitioners, and advocates will discuss the key findings of the IPCC related to gender, equity, and justice and explore how they can be applied, towards more just and effective adaptation.

The expected outcomes are:
• Greater awareness of the evidence presented by the IPCC on gender, equity, and justice in climate change adaptation
• Mobilization of this evidence for gender-responsive and just adaptation action

This session will explore how public development banks (PDBs) are integrating climate considerations from their strategic level to their operations. The goal is to mainstream climate into the financing of operations within countries at the sub-national level into economic activities and in doing so, contribute to the global climate mitigation and adaptation objectives.