Aligning Development Finance with Nature’s Needs: The role of government shareholders of development banks

Year: 2021

Content-Type: Report

Description: 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. The associated nature risks and impact stemming from PDB activity demand a high level of engagement from the shareholder government. This paper thus analyses the duties of governments in relation to nature and the supervision Public Development Banks (PDBs). It also appraises the powers available to government shareholders to direct PDB management: to improve risk management practices related to nature dependency; and, to reduce impact on nature.

Pages: 29 pages

Author: Finance for Biodiversity Initiative

Publisher: Finance for Biodiversity Initiative

Categories: Banks, Finance, Management, Risk

Tags: Finance for Biodiversity, Government Shareholders, Nature Dependency, Public Development Finance, Risk Management