The G20 leaders’ summit in New Delhi will emphasize the strengthening of multilateral development banks as crucial institutions in the fight against poverty and climate change. This initiative aims to enhance their capacity to lend to countries facing financial difficulties or disasters. G20 countries initiated this process in 2016, directing development banks to optimize their balance sheets and increase lending while minimizing risks. An International Expert Group was established to address global challenges and outlined a triple agenda: eliminating extreme poverty, tripling sustainable lending levels by 2030, and creating a funding mechanism for flexible arrangements with supportive investors. The group estimates the need for an additional $3 trillion in annual spending by 2030, with $1.8 trillion for climate action and $1.2 trillion for other Sustainable Development Goals (SDGs). This endeavor requires increased contributions from the global development finance community, including concessional funds, non-debt-creating financing, and non-concessional official lending, to mobilize private capital. The group calls for a tripling of sustainable lending levels by 2030, reaching $300 billion per year in non-concessional finance and $90 billion per year in concessional finance. Despite challenges in securing funding, strengthening multilateral development banks is essential for achieving the SDGs.
G20 Summit Focuses on Strengthening Multilateral Development Banks for Global Challenges
![](https://affairsace-media.s3.ap-south-1.amazonaws.com/2023/09/07143008/AP23248268856017-860x574.jpg)