Collaboration and ESG language to unlock funding for sustainable infrastructure projects

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Collaboration and ESG language to unlock funding for sustainable infrastructure projects

September 5, 2023

Developing countries face many challenges in mobilising private sector investment for sustainable infrastructure projects. Solutions include international cooperation and common environmental, social and governance (ESG) taxonomies. To close the climate finance gap, we need additional private investment especially in low- and middle-income countries.

To serve this purpose, Multilateral development banks (MDBs) are encouraged to expand their support for sustainable infrastructure projects and increase their risk appetite. Furthermore, collaboration among G20 public development banks (PDBs) is encouraged to leverage their strengths and promote transformative impact.

A common ESG language will also help standardise assessments of sustainable investments, reduce greenwashing and attract specialised capital. The G20 is called upon to strengthen institutional networks among developing countries, to strengthen the PDBs, and to create a universal ESG taxonomy for sustainable finance.

Ultimately, the recommendations in this paper aim to contribute to a more sustainable global economy by fostering cooperation, reducing investment risks, and accelerating the flow of funds to sustainable infrastructure projects.

Speakers

Sabrine Emran

Senior Economist

Sabrine Emran is a Senior Economist at the Policy Center for the New South (PCNS).At the PCNS, Sabrine Emran conducts research on the Energy Transition, Climate Finance, and Critical Minerals, focusing on the energy priorities of developing countries in the context of sustainable development, just energy transition, and global climate commitments.Before joining the PCNS in 2022, Sabrine Emran worked as a Commodities Analyst and Risk Management Consultant, specializing in agricultural and energy commodities as well as foreign exchange risk. She also held a position at Lyxor Asset Management as Request for Proposal and Product Specialist, where she focused on alternative investment asset classes and collaborated closely with institutional investors.Sabrine Emran holds a master’s ...