Dubai, UAE – 3 December 2023 – Finance in Common (FiCS), the Inter-American Development Bank (IDB), and Climate Policy Initiative (CPI), today announced a collaboration to develop the Finance in Common Financial Innovation Lab (FiCS Lab), a platform to foster innovation and collaboration among public development banks (PDBs) in mobilizing private capital and expanding climate finance. The FiCS Lab is supported by the Children’s Investment Fund Foundation (CIFF).
The FiCS Lab will identify and incubate innovative financial solutions to address pressing development challenges, such as climate change, debt sustainability, and local currency risks. It will provide a platform for PDBs to share knowledge, exchange best practices, and develop new approaches to financing sustainable development.
Emerging from the 2023 FiCS Summit held in Cartagena last September, the FiCS Lab is part of a broader plan to further increase cooperation between all PDBs by developing innovative tools. The initiative brings together over 530 PDBs representing about USD 23 trillion in combined assets.
A scoping study will be undertaken in the coming months to identify existing and potential innovative practices by PDBs and to outline the operating model, governance structure, and thematic focus. The Lab is expected to be operational by Q1 2024.
Rémy Rioux, Chairman of FiCS and CEO of the French Development Agency, said: “The FiCS Financial Innovation Lab is a new platform that aims to bridge the gap in financial innovation among public development banks (PDBs) to foster changes in public investment operating models. We believe this is the beginning of a collaborative effort – through peer-to-peer learning and pilot incubation – to reimagine the role of PDBs in shaping the development of innovative instruments for a more sustainable financial architecture.”
Barbara Buchner, Global Managing Director at CPI, said: “Whether we can mobilize the necessary USD 9 trillion in climate finance by 2030 will depend greatly on public development banks capacity to mobilize the necessary capital. The Finance in Common Innovation Lab presents an unparalleled opportunity for these banks to become mobilizers-in-chief through a customer-centered approach based on working on the priorities and needs of the FiCS members.”
Sonia Medina, Chief Ecosystem Development Officer (CEDO) and Executive Director, Climate at CIFF, said: “The global system of development banks – multilateral and national – will be crucial to scaling the finance necessary to achieve green, resilient development globally. We are pleased to support this initiative, which will enhance both innovation and collaboration.”
About Finance in Common
Finance in Common is the global network of all Public Development Banks (PDBs), which aims to align financial flows on the 2030 Agenda and Paris Agreement for Climate Change. Its objective is to strengthen partnerships among PDBs to accelerate the convergence towards shared standards and best practices, to support banks’ commitments to shift their strategies towards sustainability, and to give PDBs more visibility in the global fora discussing international policy issues.
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social, and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance, and training to public- and private-sector clients throughout the region.
CPI is an analysis and advisory organization with deep expertise in finance and policy. Our mission is to help governments, businesses, and financial institutions drive economic growth while addressing climate change. CPI has over 100 employees across six offices in Brazil, India, Indonesia, the United Kingdom, and the United States. Learn more at climatepolicyinitiative.org.
The Children’s Investment Fund Foundation (CIFF) is an independent philanthropic organisation, with offices in Addis Ababa, Beijing, London, Nairobi and New Delhi. Established in 2002, CIFF works with a wide range of partners, to create a healthy, fair and safe world for children. Areas of work include child health and nutrition, sexual and reproductive health and rights, opportunities for girls and young women, child protection, and catalysing climate action.
Climate Policy Initiative
Climate Policy Initiative
Gwladys Le Roy
Finance in Common