Leading multilateral development banks (MDBs) and the International Monetary Fund (IMF) have noted signs of global economic recovery and agreed to continue support for preventing a wider systemic crisis.
As a major step in the global fight against fraud and corruption, the MDBs also signed an agreement to cross debar firms and individuals found to have engaged in wrongdoing in MDB-financed development projects.
"The global economy remains fragile and MDBs will need to continue to play a counter-cyclical role in 2010, a joint statement of the MDBs and IMF said after their meeting at the European Investment Bank in Luxembourg on April 9.
The meeting also agreed that the Copenhagen Accord is an opportunity for action to fund measures to combat climate change, said a press release issue by the ADB' Bangladesh Resident Mission.
"Beyond the immediate demand of responding to the crisis, the MDBs remain focused on crisis prevention, supporting sustainable growth and development and, in particular, the need to combat climate change," it said.
The meeting also welcomed the agreements on capital increases of the ADB, EIB and IADB and looked forward to the conclusion of negotiations on replenishing resources of the AfDB, EBRD and the World Bank Group, said the press state statement.
The MDBs and IMF welcome the commitment of developed countries as part of the Copenhagen Accord to provide additional fast track financing for developing countries of US$30 billion in the period 2010-12 and the pledge to mobilise USD100 billion by 2020 in order to help developing countries cope with the impacts of climate change and achieve the deep cuts in global emissions needed to hold the increase in global temperatures below 2 degrees Celsius, it added.
The MDBs reaffirm their readiness to provide technical support to the UN process and recognise the importance of a legally binding post-2012 international agreement on climate change being concluded as soon as possible, it said, adding they also looked forward to progress being made in this regard at the talks this month and next in Bonn.
"Implementation of fast track financing is important to build confidence prior to agreeing a new international framework. The MDBs have the experience and capacity to catalyse public and private funds to help deploy such finance efficiently in support of low carbon, climate change-resilient investment in developing countries," said the joint press statement.
The MDBs will, according to the statement, coordinate their actions as appropriate to enable client countries and other partners to maximise the effective use of additional financial flows
It was also recognised that the private sector would have a significant role to play in both the financing and implementation of low-carbon investments and underline their commitment to catalyse these funds.
They fully endorsed the UN Secretary General's establishment of a High Level Advisory Group on Climate Financing and the inclusion of African Development Bank President Donald Kaberuka. They affirm their collective commitment to support the work of the group in the months to come.
They welcomed progress in implementing the Climate Investment Funds (CIF), a joint programme for financing low-carbon and climate resilient investments by several MDBs.
The MDBs will seek to continue harmonising their approaches in the field of climate change and further joint work towards enhancing knowledge management and sharing of tools and methodologies for supporting countries with vulnerability and climate risk assessments, nationally appropriate mitigation actions and improved forest management, it mentioned.
The Financial Express 04-12-10
