NITI Aayog in partnership with Indian Council of Research on International Economic Relations (ICRIER) organised the 10th feeder thematic workshop in the #NITIG20WorkshopSeries. The workshop invited deliberations by think tanks, seasoned experts, private sector and multilaterals on ‘Accessing MDB and Global Finance for Development and Green Growth’. It was hosted as a closed-room discussion at Hotel Taj Palace, Chanakyapuri, New Delhi on 09 November 2023.
The G20 NDLD, adopted in New Delhi, has set forth a transformative agenda that encompasses cross-cutting subjects of global significance. These workshops are designed to provide a structured platform for constructive dialogue and action-oriented outcomes.
One of the most important contributions of the Indian G20 presidency has been the effort towards strengthen Multilateral Development Banks (MDBs) leverage greater official and private capital for inclusive and sustainable development. The NDLD and the Fourth G20 Finance Ministers and Central Bank Governors Meeting (FMCBG) in Marrakech emphasized the need for transformative changes in the vision, operating models, and financing capacities of MDBs. It especially encouraged the MDBs to work as a system to enhance private capital mobilisation through regulatory reforms, innovative risk-sharing instruments and new partnerships (Reference: Reports of the Independent Expert Group (IEG)).
Shri Anantha Nageswaran, Chief Economic Advisor of India inaugurated the discussion and highlighted the integral link between climate and development agendas. Issues surrounding the global challenge of leveraging private capital for social goals was discussed. The deliberations focused on changing Multilateral Development Banks (MDBs) to work on broader programs instead of individual projects. They discussed creating “Country Platforms” in India which would bring together the government, private sector, financial institutions, and donors.
Shri Suman Bery, Hon’ble Vice-Chairman, NITI Aayog chaired the second session on “Implications for a Strengthened and Bigger MDB System for India” which focused on the impacts of a stronger MDB system, especially with the goal of tripling lending volume by 2030. India’s focus on becoming investable, especially in green hydrogen and ammonia, was highlighted. The discussion addressed financing challenges, including the insufficient flow of money, high costs, and limited resources. The session concluded by advocating MDBs’ cooperation instead of competition to achieve global financing targets.
Shri Ajay Seth, Secretary, Department of Economic Affairs chaired the final session on “Reorienting MDBs to Leverage Greater Private Capital for Green Investment”. Discussions highlighted the burden of serious debt on several countries and the limited taxpayer capacity to tackle climate challenges, emphasizing India’s preparedness to absorb potential funding. They explored how to use more private money for India’s green projects, including the proposed Global Challenge Funding Mechanism (GCFM) and using CSR funds. The role of financial regulators like RBI and SEBI in helping get more private money for climate change projects was also discussed. The session highlighted collaborative solutions, practical strategies, and the global effort required for impactful climate finance.
Participants and speakers at this action-oriented workshop expressed their optimism about the progress and achievements to come as India and the global community forge ahead on their journey in the run-up to 2030. NITI Aayog has organised a series of 10 thematic workshops on key agendas of G20-New Delhi Leader’s Declaration (NDLD) to devise actionable strategies and plans that can be implemented to provide impetus to growth and prosperity of the country.
Leave a Reply
You must be logged in to post a comment.