Practical approaches for advancing the use of country systems for environment and social (E&S) risk management in development finance were the focus of an E&S Community of Practice (CoP) seminar hosted by the Multilateral Cooperation Center for Development Finance (MCDF) and partners in Beijing and virtually on 24 October.
The seminar was co-organized with the Asian Infrastructure Investment Bank (AIIB), Asian Development Bank (ADB), African Development Bank, European Bank for Reconstruction and Development, International Finance Corporation, New Development Bank, and World Bank, and convened experts from these International Financial Institutions (IFIs), ministry officials, and other stakeholders engaged in sustainable infrastructure development.
In keynote remarks, AIIB Vice President Ajay Pandey emphasized that effective E&S country systems enable local ownership and contextual application of E&S standards critical for infrastructure financing by IFIs such as AIIB but noted the importance of strengthening institutional capacity to ensure the E&S standards are consistently applied and enforced. Dr. Kamia Handayani, Executive Vice President at PT Perusahaan Listrik Negara (PLN), Indonesia’s electric power utility, added that collaboration with IFIs and other development partners is key to scaling up best practices in aligning country systems with IFI standards that facilitate renewable energy transition.
“Multilateral development banks have evolved from direct safeguard enforcement toward systemic, risk-based, and capacity building approaches that emphasize alignment, mutual reliance, and continuous improvement of national frameworks,” explained MCDF CEO Zhongjing Wang, in opening remarks.
MCDF’s grant and logistical support for information sharing through the E&S CoP, in part, seeks to enhance country system effectiveness and credibility in line with IFI frameworks and reinforce a collective commitment to a development finance ecosystem that is country-driven, coordinated, and catalytic, CEO Wang continued.
A plenary session moderated by Mr. David Williamson, AIIB’s Principal E&S Specialist, looked at trends, insights, and lessons learned on country systems. A second plenary session moderated by Mr. Bruce Dunn, Director of ADB’s Office of Safeguards, examined practical approaches for maximizing the potential of country systems to achieve positive E&S outcomes.
Participants underscored the value of strengthening the interface between E&S and procurement systems to ensure E&S aspects are integrated in bidding and contract management; how operating within national laws, regulations, and institutional contexts can help enable country system alignment with IFI standards; and how applying a risk-based approach centered on material issues, development outcomes, shared accountability, and value for money can achieve sustainable results.
The seminar concluded with an interactive discussion on deepening collaboration to strengthen country systems moderated by Ms. Una Meades, the World Bank’s Lead Environmental and Social Specialist. Closing remarks were delivered by Mr. Nianshan Zhang, Head of ADB’s Office of Safeguards, and Mr. Yanning Wang, Director General of AIIB’s Sustainability and Fiduciary Solutions Department.
Before the seminar, on 22-23 October, Ms. Kisa Mfalila, Senior Advisor to MCDF’s CEO on Environmental, Social, and Governance, participated as an observer at the Multilateral Finance Institutions Working Group on Environment and Social Safeguards (MFI WGESS) meeting. MFI WGESS members welcomed MCDF’s ongoing support for the E&S CoP and broader promotion of E&S standards in connectivity infrastructure investment. Ms. Mfalila reaffirmed MCDF’s commitment to working closely with the MFI WGESS, including its sub-working group on country systems to support ongoing assessments that inform capacity building efforts.
She also met bilaterally with Xiamen National Accounting Institute representatives and together agreed on a roadmap for establishing an E&S learning center at the institute.
Contact
David Hendrickson
Senior Communications Officer
Mobile: +86 185 0114 6758
david.hendrickson@themcdf.org
