There is overwhelming agreement on the urgent need for a significant increase in investment in Emerging Markets and Developing Countries (EMDCs) to achieve the UN Sustainable Development Goals (SDGs) and the Paris Agreement goals, including a just energy transition. There is a gap of more than USD 4 trillion per annum in the investments required to meet these objectives. This gap needs to be closed urgently. This is consistent with the UN Secretary-General’s call for an SDG Stimulus of at least USD 500 billion per year, including by strengthening the role of Multilateral Development Banks (MDBs) in scaling up affordable long-term financing.
Many expert bodies and government leaders have called for effective evolution of these institutions, as illustrated most notably in the Triple Agenda report by the Independent Expert Group (IEG) commissioned by the G20.
There is strong momentum to implement the measures needed to mobilize private capital as highlighted by several recent initiatives led by MDBs, including the World Bank’s Private Sector Investment Lab and its broader evolution roadmap.
The Call to Action recognizes this momentum and is intended to reinforce and build on these calls. It is fully recognized that the public sector and MDBs need to continue to play a crucial role in the just energy transition and in achieving the SDGs. But their resources are limited. Unlocking investment from the private sector will be critical to attaining these objectives.
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