MICROCAPITAL BRIEF: African Development Bank (AfDB), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Inter-American Development Bank (IDB), World Bank Group (WBG) Issues Joint Statement on Climate Finance

A group of multilateral development finance institutions, the African Development Bank (AfDB), the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank (IDB) and the World Bank Group (WBG), recently issued a joint statement on climate finance. The organizations “pledged to maintain a strong institutional focus on climate change”[1] and committed to “leveraging additional private sector investment, continuing to innovate and promote more robust and transparent climate finance tracking and reporting”[1].

Since 2011, the six organizations have disbursed climate finance of approximately USD 75 billion. The funded initiatives “support low-carbon resilient growth in developing countries and emerging economies”[1].

Mr Josué Tanaka, the EBRD’s managing director for energy efficiency and climate change, said that “the EBRD is continuing to build on its substantial climate finance investment record. […] We remain committed to an action-oriented approach focused on achieving results on the ground at scale while upholding high standards of transparency”[1].

As of December 31, 2013, AfDB’s authorized capital totalled approximately UA 67 billion (USD 103 billion). In 2013, ADB’s financial assistance totaled approximately USD 21 billion. With total assets of EUR 49 billion (USD 65 billion), EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries during 2013. The total annual lending portfolio of EIB was EUR 71.7 billion (USD 95.8 billion) as of 2013. As of December 2013, IDB reported total assets of USD 97 billion. WBG had commitments of USD 52.6 billion in loans, grants, equity investments and guarantees as of December 2013.

By Alíz Crowley, Research Associate

About African Development Bank (AfDB)

The African Development Bank Group (AfDB) was founded in 1964 and provides loans and grants to governments and private companies in Africa. It consists of three entities: The African Development Bank, The African Development Fund and The Nigerian Trust Fund. Owned and funded by its member governments, the bank has a mandate to reduce poverty and promote sustainable development. AfDB shareholders consist of 78 member countries as of 2014, including 53 African countries. As of December 31, 2013, AfDB’s authorized capital totalled approximately UA 67 billion (USD 103 billion).

About Asian Development Bank (ADB)

Established in 1966 and headquartered in Manila, the Philippines, the Asian Development Bank (ADB) is a development finance institution that consists of 67 members. ADB has three strategic priorities: to foster inclusive growth, to facilitate regional integration and to ensure environmentally sustainable growth. To accomplish these objectives, ADB uses loans, technical assistance programs, grants, equity investments and guarantees to private companies in member countries in the region. In 2013, ADB’s financial assistance totaled approximately USD 21 billion.

About European Bank for Reconstruction and Development (EBRD)

The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London, England. The bank began operations in 1991 upon the agreement of 40 countries, and it is owned by 64 countries as well as the European Investment Bank and the European Union as of 2014. It aims to finance operations that are both commercially viable and assist development in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). With total assets of EUR 49 billion (USD 65 billion), EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries during 2013.

About European Investment Bank (EIB)

The European Investment Bank (EIB) was created in 1958 and serves as the long-term lending bank of the European Union as of 2014. In addition to supporting projects in EU member states, its main priorities include financing investments in likely future member states and EU partner countries, principally in the area of small and medium-sized enterprises. According to its website, “the EIB operates on a non-profit maximizing basis and lends at close to the cost of borrowing.” The total annual lending portfolio of EIB was EUR 71.7 billion (USD 95.8 billion) as of 2013.

About Inter-American Development Bank (IDB)

The Inter-American Development Bank (IDB) is a US-based multilateral finance institution that was established in 1959 and operates in Latin America and the Caribbean. IDB works with governments, companies and nongovernmental organizations (NGOs) to provide both loans and grants to support small and medium-sized enterprises (SMEs), health, education and other sectors. IDB also provides technical assistance and research in these areas. Its Board of Executives is elected by 48 member countries, 26 of which are located in Latin America and the Caribbean. IDB is headquartered in Washington, DC, with offices also in Japan, France and all 26 member countries in Latin America and the Caribbean. As of December 2013, IDB reported total assets of USD 97 billion.

About The World Bank Group

Headquartered in the US, the World Bank Group (WBG) is a multilateral development organization that aims to improve living standards for people in developing countries. As of 2014, WBG encompasses the International Bank for Reconstruction and Development (IBRD), owned by 188 member nations; the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID). WBG has 10,000 employees and operations in approximately 120 countries as of 2014. WBG had commitments of USD 52.6 billion in loans, grants, equity investments and guarantees as of December 2013.

Sources and Additional Resources

[1] European Bank for Reconstruction and Development (EBRD), Multilateral Development Banks Agree to Reinforce Climate Financing in Advance of UN Summit

[2] European Bank for Reconstruction and Development (EBRD), Joint Statement by Multilateral Development Banks (MDB) on Climate Finance

MicroCapital, August 24, 2014, European Bank for Reconstruction and Development (EBRD) Lends $5m to DemirBank of Azerbaijan to Promote Residential, Business Energy-Efficiency Projects

MicroCapital, July 20, 2014, European Bank for Reconstruction and Development (EBRD) Loans Kyrgyz Investment and Credit Bank (KICB) $5m; Demir Kyrgyz International Bank (DKIB) $4m for On-lending to Fund Energy Efficiency Improvement Projects

MicroCapital, July 17, 2014, 2015 Cracking the Nut Conference, “Expanding Rural & Agricultural Markets Amid Climate Change,” March 2-3, 2015, Lusaka, Zambia

MicroCapital Universe Profile: African Development Bank (AfDB)

MicroCapital Universe Profile: Asian Development Bank (ADB)

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD)

MicroCapital Universe Profile: European Investment Bank (EIB)

MicroCapital Universe Profile: Inter-American Development Bank (IDB)

MicroCapital Universe Profile: The World Bank Group (WBG)

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