Banks boost spending on sustainable growth

THE African Development Bank (AfDB) and five other Multilateral Development Banks (MDBs) have agreed to significantly leverage their commitment to sustainable development.The concord between the AfDB, the European Bank for Reconstruction and Development, the Inter-American Development Bank, the European Investment Bank, and the World Bank Group, was made at the UN Conference on Sustainable Development, “Rio+20”, in Rio de Janeiro, Brazil, last week.The MDBs’ investment in sustainable development activities averaged US$93 billion annually in the past five years. “The need for transition towards green growth has been recognized as key to sustainable development and prosperity. We are committed to supporting this transition to green growth – growth that is attained with a smaller environmental footprint, is inclusive and achieves gains in opportunities and access to resources by all segments of the population to reduce income inequity,” the statement reads in part.They said that Rio+20 provided “a unique opportunity to launch a renewed strategy for sustainable development.”According to the statement, the rationale behind the proposed increase in sustainable development spending was that a new “green paradigm” needed a “concerted global effort to innovate and substantially scale up current efforts.”The AfDB says sustainable development and green strategies is a crucial area of action for Africa. The continent contributes the least to greenhouse gases but tends to suffer the most, in terms of flooding, droughts, and desertification, among other natural disasters.The AfDB has developed its Green Growth Vision Paper and is investing approximately $6.4 billion over a five year period between 2011 and 2015 through its Climate Action Plan in the energy, transport, water and agriculture sectors. Commenting on the statement, the AfDB President, Donald Kaberuka, said: “African countries’ pressing need for growth to combat poverty at a time of runaway population growth mean that development policies must be fashioned to reduce the environmental impact. And the same African countries also need to position themselves so they benefit from promoting green economic growth.”

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Banks boost spending on sustainable growth