Aligning Development Finance with Nature’s Needs: The role of government shareholders of development banks
Public Development Bank (PDB) encompasses a range of institutions with government shareholding, including multilateral, bilateral, national, and sub-national development banks. These banks have public policy-oriented mandates (as opposed to commercial mandates), and deploy financial instruments such as loans, equity, or guarantees (as distinguished from grant-making agencies). They exist to enable sustainable economic development, but some of their investments also put nature at risk.
Aligning Development Finance with Nature’s Needs: Estimating the nature-related risks of development bank investments
This paper is an updated and expanded version of the one released in November 2020 ahead of the inaugural Finance in Common Summit. It aims at demonstrating that Public Development Banks (PDBs) can and should perform a stress test of the nature-related risks and impacts on their balance sheets nowadays.