Finance in Common Summit: Public Development Banks from around the world strengthen commitment to post-pandemic recovery, sustainable development and agriculture. Over 500 Public Development Banks (BPS) met in recent days in Rome to promote models capable of catalysing public and private resources towards sustainable agri-food systems and food security, contrast and adaptation to climate change, protection of biodiversity, promotion of equality gender and social inclusion
Global BPSs collectively represent investments of over 2.000 billion dollars, approximately 10% of total global investments.
During the summit, the agreement for the "PDBs Platform for Green and Inclusive Food Systems" was signed between CDP, IFAD and other BPS aimed at increasing the resources mobilized towards the agricultural sector of developing countries
The more than 500 Public Development Banks (BPS) from all over the world thus intensify their collaboration and strengthen their commitment to support economic recovery and growth on a global level, promoting a model of sustainable development towards which to direct more and more attention and resources financial institutions, both in the public and private sectors.
The attention of the second edition of the Finance in Common Summit (FiCS) was focused precisely on these issues, hosted this year in Rome by Cassa Depositi e Prestiti, the Italian financial institution for development cooperation. The event was held in partnership with the International Fund for Agricultural Development (IFAD, the United Nations specialized agency for increasing agricultural activities in backward countries) and with the support of the World Federation of Development Finance Institutions (WFDFI), the International Development Finance Club (IDFC), Agence Française de Développement (AFD) as well as the entire FiCS coalition.
The international conference of the FiCS is included in the calendar of the Italian Presidency of the G20, as reported by the citation of the Event contained in the Final Declaration of the "G20 Finance Ministers and Central Bank Governors" of 13 October last. In 2022, the FiCS will present a report on the progress of its activities to the current G20 Presidency, testifying to the crucial role played by the world's BPSs which represent, at an aggregate level, investments of over 2 trillion dollars, around 10% of total world investments, acting as a link between public policies and the private sector.
The 2021 edition of FiCS saw the participation of over 150 speakers from all over the world, with 10 thematic sessions, 5 plenary sessions, 3 sessions on strategic analyzes and scenarios and 3 discussion tables between the BPS and their main stakeholders. During the work, coordination between the BPS around the world was further strengthened in order to amplify the impacts of their common actions on a global scale. The work of the Summit focused on the main challenges of our times, such as: the development of sustainable agri-food systems, food security, the fight against and adaptation to climate change, the conservation of biodiversity, responsible finance, gender equality and social inclusion, sustainable development of the private sector.
The event was also an opportunity to continue the dialogue between the BPS community and civil society, the private sector, local governments, donors, philanthropic organizations and think tanks to ensure their involvement in actions and projects .
In the first edition of the FiCS, held in November 2020 in Paris, the BPS had agreed on the implementation of a set of coordinated actions, aimed at tackling the economic, social and environmental criticalities amplified by the COVID-19 pandemic and at accelerating, through their collective efforts, the achievement of the Sustainable Development Goals (SDGs) of the United Nations 2030 Agenda and the objectives of international climate agreements.
Furthermore, the Finance in Common Summit 2021 was the occasion for the signing of:
- a letter of intent between CDP and FAO to build a solid partnership on food security issues and implement joint project initiatives to support the agri-food sector in rural areas of developing countries.
- the Joint Declaration on the “European Strategic Cooperation Framework” between the four European bilateral financial institutions – CDP, the French AFD, the German KfW and the Spanish AECID – part of the Enhanced Partnership with the European Union. The goal is to further consolidate its action through a joint initiative that leads to the structuring of a co-financing platform of which the Joint Declaration will govern the modus operandi, the principles and objectives of the partnership, a co-financing contractual framework and pipeline sharing activities.
- the launch of the “PDBs Platform for Green and Inclusive Food Systems” by IFAD, CDP and other BPSs with the support of AFD, aimed at accelerating greener and more inclusive investments in agriculture and in food processing, packaging and transport activities . This initiative is part of the Coalition for Action for Inclusive and Sustainable Food System Finance which has over 72 BPS specialized or strongly committed to the agricultural sector which together account for two thirds of global investment in agriculture. These institutions aim to leverage their role as a catalyst of public and private resources to steer agriculture and food systems towards a more sustainable, resilient and inclusive direction, while ensuring productivity and sustainability in trade.
The Finance in Common coalition also reaffirmed its commitment to tackling climate change. The BPS are, in fact, increasing the resources mobilized for the climate, as evidenced by the investment in "green projects" of 2015 billion dollars from 1.000 to today by the 26 BPS belonging to the International Development Finance Club (IDFC) and commitments for further financing by 2025. The Public Development Banks are also supporting more ambitious national projects and long-term strategies that favor a reduction in financing from fossil fuels.
"Since November 2020 - underlined Adama Mariko, Secretary General of the Finance in Common summit - the entire BPS community has structured its governance and has taken important steps forward to fully exploit its overall potential to achieve sustainable and effective results for all populations and all territories. We look forward to continuing these discussions at COP26 and COP15 and reporting back to the G20 and all parties, as we continue to press for ambitious mandates, resources and capabilities to better align with the SDGs and the Paris Agreement.”
The Chairman of Cassa Depositi e Prestiti Giovanni Gorno Tempini declared: “The Finance in Common Summit 2021 that CDP had the honor of hosting in Rome represented an important opportunity for international discussion to reaffirm and strengthen the commitment to act as a single system, so that the more than 500 development banks can immediately unleash their full potential. Indeed, the pandemic and the socio-economic crisis that followed have contributed to amplifying global inequalities and highlighting the urgent need to review current growth models. In this context, cooperation between Public Development Banks, such as CDP, will play a crucial role in tackling the complex challenges of the future with the aim of a sustainable and long-term economic recovery”.
The President of the International Fund for Agriculture and Development (IFAD), Gilbert F. Houngbo, said: “I am very pleased to see the commitment made by the BPS to accelerate green and inclusive investments in agriculture and food systems, which it is especially crucial in view of the COP26 negotiations. This will support millions of small rural farmers to adapt to climate change and improve their lives and incomes. Finance In Common proves that by joining forces and joining forces we can build a better world.”
Rémy Rioux, Chief Executive Officer, Agence Française de Développement, said: “Just one year after we brought together for the first time all 530 BPSs operating at a multilateral, international, regional and local level, the second edition of the FiCS, hosted by CDP in collaboration with IFAD, shows that this movement is gaining momentum. FiCS, which represented over $2.000 trillion in investment in 2020, promotes multi-stakeholder coalitions and contributes to the global finance debate, from the Summit on Financing African Economies to the G20. Driven by a strong consensus on the need to mobilize BPS for crisis recovery by further investing for the SDGs and the Paris Agreement, FiCS has become a platform for sustainable initiatives for our Governments, our partners and our customers. We are honored and proud that the UN Secretary-General and the G20 approve our contribution to the international agenda on climate, ahead of COP 26, and on the theme of nature, a few months before the conclusion of COP 15, with a specific focus on agroecology and food systems”.
The President of the European Investment Bank (EIB), Werner Hoyer said: “The Covid-19 pandemic has shown us how connected we are and how much value we can create by working together on innovative solutions to revive our economies. Public Development Banks all together have a strong impact. Finance in Common demonstrates that the better we coordinate, the more we can drive change and support projects that have a positive impact on the planet and its people."
Akinwumi Adesina, President of the African Development Bank, said: “As we look forward to hosting the Finance in Common Summit in 2022, we will continue our work to strengthen African financial institutions and mobilize finance for African economies. In the wake of Covid-19, the imperative to close the financial gap has never been greater."
During the summit, some academic research was presented which demonstrates the centrality of the BPS in putting in place the financial support necessary to support long-term development: the integral materials of these studies will be made accessible on the financeincommon.org website.
The next edition of the Summit (FiCS 2022) will be hosted by the African Development Bank (AfDB) and the European Investment Bank (EIB).
