Experts from International Financial Institutions (IFIs) and other stakeholders of the Multilateral Cooperation Center for Development Finance (MCDF) described the value of MCDF support for environmental and social (E&S) safeguards in cross-border connectivity infrastructure projects during a roundtable discussion. It was held as part of the MCDF Coordination Committee meeting in Beijing and online on 5 June.

E&S specialists from the Asian Infrastructure Investment Bank (AIIB), Asian Development Bank, and African Development Bank (AfDB), as well as a beneficiary country representative from the Philippine Learning Center for Environment and Social Sustainability, noted the importance of IFI E&S standards and good practices for sustainable connectivity growth in developing countries.

They went on to share insights on how MCDF Finance Facility grants and IFI cooperation under the MCDF Collaboration Platform are promoting the application of these standards and practices in IFI connectivity infrastructure projects globally.

The discussants spotlighted E&S information-sharing and capacity building activities in Asia funded by an MCDF grant being taken forward by MCDF Implementing Partner AIIB. This includes coverage of areas such as wind power, intermediated finance, and sustainable transport. They also explored E&S support opportunities for African countries under a parallel MCDF grant, to be implemented by AfDB.

They noted the role MCDF’s grants and broader information and capacity building work play in fostering project collaboration, unlocking investment, mitigating risks, and addressing E&S challenges. Key examples of these challenges include climate change, occupational health and safety, and the protection of indigenous communities.

“MCDF is endeavoring to bring together partner governments, International Financial Institutions, developing country financiers, and other stakeholders to promote global standards for enhancing cross-border connectivity project financing and environmental and social safeguards,” said Ines Fejzic, MCDF Senior Environment and Social Development Specialist and the roundtable’s moderator. “Expanding training and knowledge sharing is a critical building block to achieving this shared objective,” she added.

The roundtable concluded with a look at the road ahead for E&S policy development, implementation, and collaboration between IFIs that could be supported by MCDF.

Center: Ines Fejzic, Senior Environment and Social Development Specialist, Multilateral Cooperation Center for Development Finance