Fourth Finance in Common Summit (FiCS), a global initiative born in 2020 to harmonize the global financial system with the Sustainable Development Goals (SDGs) and the Paris Climate Agreement, focused on ESG investments, environmental protection, development of small and medium-sized enterprises and financial inclusion. The summit took place in Cartagena, Colombia, with the collaboration of the Inter-American Development Bank (IaDB), of the Colombian Development Bank (bancoldex) and Latin American development financial institutions (ALIDE).
The FiCS initiative sees the participation of more than 500 Development Banks (BPS), for total volumes of over 23 trillion dollars in assets and an ability to mobilize $2.700 trillion per year, equivalent to approximately 10% of investments globally. Over the years, the summit has also seen the participation of a wide range of actors, including regional networks, international organizations, private entities, academia, research centers and civil organizations.
The role of CDP
During the event, CDP played a prominent role in various debates, focusing on the alignment of public and private finance with the SDGs, the expansion of green finance into emerging and developing economies, and sustainable infrastructure financing. CDP has also made several commitments, particularly on the environment, including joining the “Global Green Bond Initiative” participation in the “Call to Deliver Positive Action For The Ocean” and the renewal of the commitment in the “Water Finance Coalition”.
Paolo Lombardo, Director of International Development Cooperation at CDP, declared: “In recent years, CDP has undertaken a significant path of aligning its strategy and operations with the Sustainable Development Goals, with the promotion of initiatives increasingly linked to not only economic sustainability, but also environmental, social and governance, selected and measured through a new paradigm that balances risk, return and impact. A path that intersects with that of growth in international development finance: in recent years, CDP has in fact leveraged the skills acquired in over 170 years of history to structure innovative financial operations in emerging and developing economies, according to a mutual partnership approach that promotes the sustainable and inclusive development of local realities while strengthening economic ties between Italy and partner countries. A commitment that also translates into the numerous agreements signed over time within the FiCS coalition, which put the protection of the planet and people at the centre."
Cdp's activity
Going into the details of Cassa Depositi e Prestiti's activity at the Summit, CDP signed a strategic partnership to support the development of green bonds in Latin America and the Caribbean together with the European Commission and other financial institutions, including the Spanish Agency for international development cooperation (AECID), the French Development Agency (AFD), the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), the Green Climate Fund (GCF) , the German Development Bank (KfW) and the Inter-American Development Bank (IaDB).
This partnership is part of the technical assistance program of the Global Green Bond Initiative (GGBI), announced by the President of the European Commission, Ursula von der Leyen, in June 2023. The aim is to facilitate the flow of private capital towards environmental protection projects, allowing European Union countries to access greater funds. This initiative is expected to generate green investments in the order of 15-20 billion euros.
Underlining the importance of CDP joining the GGBI, CDP International Development Cooperation Director Paolo Lombardo declared: “The Global Green Bond Initiative aims to attract private investors to green bonds, rapidly evolving financial instruments, opening the door to potential new issuers who, without this tool, may not have access to capital markets to place their green bonds. We can therefore say that GGBI is a highly inclusive tool, which CDP is proud to support".
The new initiative to develop a Blue Finance Roadmap
CDP and other institutions have also launched a new initiative – called “A Call to Deliver Positive Action For The Ocean” – with the aim of developing a “Blue Finance Roadmap” to increase investment in ocean protection. This initiative promotes marine biodiversity and funds projects related to the protection of marine areas, port ecology and the circular economy, as well as emerging sectors such as sustainable aquaculture and marine biotechnology. The Blue Finance Roadmap will be presented at the next United Nations Ocean Conference in 2025 in France.
In 2021, CDP and other institutions had launched the “Water Finance Coalition” to promote investments in the water and sanitation sectors. This commitment was renewed in Cartagena, recognizing the importance of mobilizing financial resources in the water sector and the crucial role of public development banks in ensuring water security for all.
CDP also coordinated work between Development Banks and international financial institutions to promote investments in sustainable infrastructure during the Cartagena summit. The goal is fill the gap between the interest of private investors in infrastructure and the lack of quality infrastructure projects. This effort aims to generate financial returns, as well as positive social and environmental impacts in emerging and developing economies, in anticipation of Italy's 2024 G20 and G7 Presidency.
