Management SpeechesOpening Remarks by Mr. Anil Kishora (VP & CRO) at NDB Side Event at COP29, November 14, 2024

Distinguished guests, dear colleagues, and esteemed partners,

Good evening and a warm welcome to you all on behalf of the NDB. Our sincere gratitude to the esteemed panellists and to the audience for taking the time to be part of this event.

In today's event on "Sharing Instruments of MDBs to Support Private Capital Mobilization in Emerging Markets and Developing Countries", we focus on the role that multilateral development banks play in mobilizing private capital to meet the urgent sustainable development and climate needs of emerging markets and developing countries.

Today we have with us a group of experts with a diverse range of experience. As we continue to search for solutions to mobilize private capital towards a sustainable future, their insights and ideas will be helpful.

Ladies and gentlemen,

Various studies continue to point out that financial resources available for developing countries to fund their 2030 agenda are vastly outweighed by their needs. It is estimated¹ that these countries face an annual financing gap of about USD 4 trillion to achieve the UN SDGs by 2030. If the SDG investment needs to 2030 are to be met, some USD 30 trillion of additional investment is cumulatively required. More than half of this, or $2.2 trillion, relates to the energy transition alone.

Is there a way MDBs can play a bigger role in closing this huge financing gap? Leveraging their own capital is just not enough. MDBs, operating as a system, need to significantly ramp up their capacity to mobilize private sector resources.

MDBs have been expanding their roles as catalysts for private capital. Development of diversified financial instruments, project-specific investment vehicles, and technical assistance initiatives that support project preparation and readiness have proved useful.

To attract more private investors, MDBs are also focusing on innovative risk-sharing and de-risking strategies. Today, we look forward to our panellists to hear about the strategies for catalysing or crowding in private finance in EMDCs.

By reflecting on successful case studies and effective models, we can identify what has worked and how these lessons can be scaled across regions. Private capital pools can be transformative. The issue is to find the right recipe to unlock them for meeting our climate aspirations.

We also have to explore better the risk-mitigation tools that are essential to pull in private investors into high-potential yet challenging markets. MDBs can play an important role by using financial instruments like guarantees, blended finance, local currency loans and other mechanisms to make investments in EMDCs less risky and more attractive.

We need to understand the impact of these tools and evaluate how MDBs can further expand their use to overcome investment barriers, foster resilient investment environments, and tap the vast potential of private capital.

Steps to strengthen collaboration among MDBs, DFIs, and the private sector and of course the governments are essential. Effective partnerships are fundamental for creating scalable financing solutions that meet the EMDCs' climate finance needs.

Ladies and gentlemen,

Let me conclude by repeating the obvious - private capital mobilization is essential for achieving the global climate goals.

Stronger collaboration with private players, leveraging of our convening power to remove roadblocks, strategic de-risking, and targeted innovation can probably catalyse a level of private capital which bridges or meaningfully curtails the current climate financing gap. Let's listen to what our expert panellists think.

Thank you.

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