The Heads of 10 multilateral development banks (MDBs) supported the G20 Roadmap towards Better, Bigger, and More Effective MDBs, following its endorsement by G20 leaders. The Roadmap outlines an ambitious vision to continue reforming MDBs to address both regional and global challenges, create new job opportunities, and accelerate progress toward the Sustainable Development Goals (SDGs) and the Paris Agreement climate targets.
This endorsement is part of Brazil’s G20 presidency, building on commitments made by G20 leaders in New Delhi in 2023. The G20 document recommends boosting MDBs’ financing capacity and enhancing collaboration with governments, national banks, and the private sector.
This focus on systemic collaboration aims to maximize the worldwide impact of MDBs in fostering sustainable development.
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The MDBs have worked closely with Brazil’s G20 presidency to align their efforts with the Roadmap, leveraging past work. In 2024, MDBs published a Viewpoint Note with 16 deliverables across priority areas, showcasing unprecedented cooperation among institutions.
The MDBs integrated fourteen of those deliverables into the Roadmap and helped prioritize short- and medium-term actions for its implementation.
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MDBs have achieved several key milestones this year that have advanced their collective goals. They reached their target of increasing lending headroom by around $400 billion over the next decade. In 2023, MDBs increased climate finance, lending $75 billion to low- and middle-income countries and $50 billion to high-income nations. Private finance mobilized by MDBs nearly doubled to $101 billion in 2023, up from $52 billion in 2022.
AMDBs raised climate finance estimates for low- and middle-income countries to $120 billion by 2030, a 60% increase. Additionally, an estimated $50 billion for high-income countries complements this increase. These efforts aim to boost MDBs’ capacity to fund climate mitigation, development, and resilience projects across countries.
MDBs have harmonized procurement practices to reduce costs and enhance supply chain efficiency and sustainability across projects. They have also taken steps to expand mutual reliance agreements, which simplify procurement processes between MDBs. They are continuing their work to mobilize the private sector, mainly through scaling up local currency financing and hedging instruments.
