In 2015, the global community adopted the 2030 Sustainable Development Agenda and the Sustainable Development Goals (SDGs) that underpin it, as well as actions needed to fulfill the commitments made at the 21st Conference of the Parties to the UN Framework Convention on Climate Change.
As we highlighted at the Third International Conference on Financing for Development in July 2015, the financial resources needed to achieve the SDGs far exceed current financial flows. Indeed, as explained in a paper prepared for the Conference and endorsed by the World Bank/IMF Development Committee in April 20151, the world needs to move from billions to trillions of financing in order to meet the challenge of promoting inclusive, sustainable growth, reducing poverty and inequality, and protecting the planet.
At this time, we came together as Multilateral Development Banks to reaffirm our pledge to catalyze more investment from private investors and other sources of capital such as pension funds, sovereign wealth funds and insurance companies. We do this by leveraging our own capital base by borrowing from capital markets to increase our own ability to finance development. In addition, we catalyze greater private investment by: i) helping evaluate and structure high quality investment projects; ii) helping mitigate risk (real and perceived) associated with investments that have a positive development impact; iii) mobilizing resources from and co-investing alongside both traditional investors and new sources of commercial financing for development; and iv) developing new financial products to help unlock additional flows.