This publication highlights the urgent need to significantly scale up global climate financing to enable transformative investments to achieve net zero emissions. The document draws attention to the so-called “vicious macro-financial cycle,” which constrains the ability of many developing countries to attract scarce private green capital. As a response, it advocates for enhanced partnerships between Multilateral Development Banks (MDBs) and National Development Banks to help disrupt this cycle. This policy brief uses Brazil as a case study to illustrate the challenge and demonstrate how such partnerships can enhance climate finance and secure critical funding for a sustainable transition.

This Policy Brief is the result of the project “Enhancing Resource Mobilization for Sustainable Investments through MDB Partnerships with National Development Banks,” funded by the Center for Global Development (CGD) and developed in collaboration with the Brazilian Center for International Relations (CEBRI).

Listen to the podcast  “Development Banks in the Green Transition” to grasp the role of development banks in sustainable development, HERE.

The opinions expressed in this report are solely those of the author and should not be assigned to any institutions.