How European financial institutions can work better together for sustainable and green (co-)investment in times of COVID-19
In times of COVID-19, European and regional financial institutions for development, development finance institutions (DFIs) and public development banks need to step up and coordinate their efforts.
The unprecedented scale of the crisis generated by the COVID-19 pandemic calls for greater empowerment of international, European and regional financial institutions for development, development finance institutions (DFIs) and public development banks. They all need to step up their efforts, to ‘build back better’, in a greener, more inclusive and gender-sensitive manner. This paper suggests ways to do that, adjusting the current business model of financial institutions for development to align and coordinate European investments for development.
The European Union (EU) and its member states are well placed to help ‘build back better’ by building on their strategic approaches, (financial) institutions, instruments and initiatives. To unlock this potential, however, it is important to further strengthen the European financial architecture for development (EFAD), in particular by enhancing coordination, joint and complementary investments and approaches among European financial institutions and with other development actors and institutions.
The paper recommends the creation of enhanced European co-investment vehicles and investment platforms, embedded in the EU’s overall framework, and it explores the focused use of Team Europe and new Team Europe-Partner countries and regions (starting with Africa) for sustainable investment.