G20 side event discusses ways of leveraging climate finance and the role of development banks in tackling the global climate emergency. Debates bringing together experts, representatives of the forum's member countries and multilateral financial institutions continue on Tuesday, May 21.
The capacity of development banks to act in a coordinated manner to contribute to solutions for the ecological transition was the theme of the G20 side event held this week in Rio de Janeiro. The event brought together experts, representatives of the forum's member countries, and financial organizations to explore ways of leveraging financing to tackle the climate emergency in Brasil and around the world.
According to Nelson Barbosa, director of the Brazilian Development Bank (Banco Nacional de Desenvolvimento Econômico e Social - BNDES), development banks are capable of coordinating "patient" and "more adequate" capital to address the challenges of this century, including overcoming poverty, developing infrastructure, and managing the climate transition. Recalling the humanitarian emergency in the Brazilian state of Rio Grande do Sul, Barbosa emphasized that institutions like the BNDES could play a crucial role.
"A special credit line will be needed for reconstruction. We already have lines of credit for adaptation and mitigation, and now we must consider credit lines to address loss and damage. Reality has arrived, and development banks must confront the effects of the climate crisis," said Barbosa.
Barbosa pointed out that the volume of resources and the timelines required for addressing climate catastrophes make increased government involvement inevitable. "The BNDES will play its part in aiding reconstruction, and we are challenging all other banks to do the same," he added.
Improving the Efficiency of Multilateral Organizations
Rémy Rioux, president of Finance in Common (FiCS), stated, "It is our responsibility to work collectively to provide input for the G20 Brasil presidency from a financial agenda perspective." He listed several "critical issues," including the reform of the global financial architecture.
"We need to reformulate the institutions of the Bretton Woods Agreement. We will strive to discover innovative financial solutions for climate resilience and robust infrastructure. Additionally, we will address the voluntary carbon market, where we have significant contributions to make," Rioux stated.
Ambassador Tatiana Rosito, coordinator of the G20 Finance Track, took the opportunity to emphasize some of Brasil's priorities leading up to the G20. "President Lula's administration prioritizes overcoming poverty, financing the energy transition, and reforming the global financial system," she remarked.
Combating hunger and poverty: Strategies for Sustainable Development
The diplomat emphasized Brasil's advocacy for a global alliance against poverty and a task force to combat climate change. "We understand the challenges involved, requiring both political efforts and funding," she stated, supporting initiatives such as taxing the super-rich. "This is a topic we're proposing for discussion, aiming to achieve a consensus at the G20 and issue a corresponding declaration this year," Rosito added.
Rosito also highlighted the role of the world's largest economies in developing and organizing resources for the climate transition. In Brasil, she recalled, public development banks are aligned with the Ecological Transformation Plan led by the Ministry of Finance. This agenda not only influences the G20 Brasil's presidency but also extends to COP30, another international forum where Brasil will soon have a significant presence.
This event serves as one of the preparatory meetings for the upcoming G20 summit of heads of state, scheduled for November under Brasil's presidency. Organized by the BNDES, in collaboration with the Ministry of Finance, the global network FiCS, and the Institute for Climate and Society (iCS), the discussions will continue on Tuesday, May 21.
