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The role of National Public Development Banks in financing the water and sanitation SDG 6, the water related goals of the Paris Agreement and biodiversity protection

This report is a global assessment of national public development banks’ (PDBs) involvement in the water sector in its broadest sense. It was commissioned by the Agence Française de Développement (AFD) in the context of the Finance in Common Initiative, which seeks to enhance PDBs’ role in financing countries’ commitments to the Sustainable Development Goals (SDG) and the Paris Agreement.

PDBs are banks located within the public sphere by mandate, ownership or governance. PDBs have a specific mandate to deliver on public policy objectives that support the economic and social development of a country or region.

Historically, national PDBs have played a significant role in water sector development in high-income countries such as France, Italy and the Netherlands. Whilst there are examples that PDBs play a similar role in middle-income countries, it also appears that their involvement in the water sector has not yet reached its full potential.

The main hypothesis of the assessment was that national public development banks are underused and that they have the potential to raise finance for achieving both the SDG 6 and the water-related Paris Agreement goals.

To test this hypothesis, this research assessed: 1) the nature and extent of PDB involvement in financing water-related investments, and 2) the drivers and constraints for PDB involvement in the water sector. Finally, the assessment sought to define recommendations for enhancing PDBs’ role in water-related investments, to see if the hypothesis could be confirmed.

TitleThe role of National Public Development Banks in financing the water and sanitation SDG 6, the water related goals of the Paris Agreement and biodiversity protection
Publication TypeResearch Report
Year of Publication2021
AuthorsFonseca, C., Mansour, G, Smits, S, Rodriguez, M., IRC
PaginationFull report [123 p.] Executive Summary [10 p.], Annexes [61 p.], Report without Annexes [62 p.]
Date Published07/2021
PublisherAgence Française de Développement
Place PublishedParis, France
Publication LanguageEnglish
Abstract

This report is a global assessment of national public development banks’ (PDBs) involvement in the water sector in its broadest sense. It was commissioned by the Agence Française de Développement (AFD) in the context of the Finance in Common Initiative, which seeks to enhance PDBs’ role in financing countries’ commitments to the Sustainable Development Goals (SDG) and the Paris Agreement.

PDBs are banks located within the public sphere by mandate, ownership or governance. PDBs have a specific mandate to deliver on public policy objectives that support the economic and social development of a country or region.

Historically, national PDBs have played a significant role in water sector development in high-income countries such as France, Italy and the Netherlands. Whilst there are examples that PDBs play a similar role in middle-income countries, it also appears that their involvement in the water sector has not yet reached its full potential.

The main hypothesis of the assessment was that national public development banks are underused and that they have the potential to raise finance for achieving both the SDG 6 and the water-related Paris Agreement goals.

To test this hypothesis, this research assessed: 1) the nature and extent of PDB involvement in financing water-related investments, and 2) the drivers and constraints for PDB involvement in the water sector. Finally, the assessment sought to define recommendations for enhancing PDBs’ role in water-related investments, to see if the hypothesis could be confirmed.

Citation Key88053

Disclaimer

The copyright of the documents on this site remains with the original publishers. The documents may therefore not be redistributed commercially without the permission of the original publishers.