Page 160 - Low Carbon Development in China and India
P. 160
Multilateral Financial Institutions 2.2
Multilateral financial institutions (MFIs) refer to the international
financial institutions as founded and led by three or more governments
and their members, which not only include the developed countries
which donate money, but also include the developing countries which
borrow money. MFIs mainly offer loans and grants to developing
countries, and provide financing for private sectors by means of
creditor’s rights, equity, and guarantee. In recent years, they have
obtained fruitful achievements in the climate change sector and could
lever a part of external capital, in addition to their own investment.
The World Bank (WB) has also actively taken measures against
climate changes in 130 countries and obtained a series of achievements.
In 2008, WB promulgated the Strategic Framework for Development
and Climate Change (SFDCC) and listed the highlights from 2009 to
2011—increasing financing in suitable sectors, facilitating the carbon
market development, and promoting the application of climate risk
insurance. In 2011, the state support and country partnership strategy
plan as approved by WB Group had taken climate change as priority
and the International Bank Reconstruction and Development (IBRD),
International Financial Corporation (IFC), and Multilateral Investment
Guarantee Institution (MIGI) subordinated to WB Group transferred
part of international capital to China. By the end of October 2012, IBRD
and the International Development Association (IDA) have offered
loans to China with the amounts of USD 21.38 billion and USD 10.21
billion, respectively.15 A part of the funds were invested in renewable
resources, urban transportation, urban construction and environment,
etc. In addition, WB is also the trustee of the Global Environment Facility
(GEF) and cooperates with China in climate financing and technical
assistance by GEF. To be specific, in the climate change sector, WB
programme database shows that the relevant programmes carried out
in China totalled USD 1,352 million (including the programmes where
only part of the capital was invested in the climate change sector), and
was mainly carried out by IBRD/IDA and GEF.16
The local government should also strengthen the cooperation
with multilateral financial institutions. In addition to the bilateral
financial institutions, multilateral climate fund is also an important
15 http://data.worldbank.org.cn/country/china#cp_fin
16 World Bank Database.Available at http://web.worldbank.org/external/
programs/main?pagePK=217672&piPK=64778441&theSitePK=3535340&menu
PK=3535699&category=regcountries®ioncode=3&countrycode=CN&sortb
y=PROGRAM_NAME&sortorder=ASC
Chapter 2 Innovative Financing for Low Carbon Development 125
Multilateral financial institutions (MFIs) refer to the international
financial institutions as founded and led by three or more governments
and their members, which not only include the developed countries
which donate money, but also include the developing countries which
borrow money. MFIs mainly offer loans and grants to developing
countries, and provide financing for private sectors by means of
creditor’s rights, equity, and guarantee. In recent years, they have
obtained fruitful achievements in the climate change sector and could
lever a part of external capital, in addition to their own investment.
The World Bank (WB) has also actively taken measures against
climate changes in 130 countries and obtained a series of achievements.
In 2008, WB promulgated the Strategic Framework for Development
and Climate Change (SFDCC) and listed the highlights from 2009 to
2011—increasing financing in suitable sectors, facilitating the carbon
market development, and promoting the application of climate risk
insurance. In 2011, the state support and country partnership strategy
plan as approved by WB Group had taken climate change as priority
and the International Bank Reconstruction and Development (IBRD),
International Financial Corporation (IFC), and Multilateral Investment
Guarantee Institution (MIGI) subordinated to WB Group transferred
part of international capital to China. By the end of October 2012, IBRD
and the International Development Association (IDA) have offered
loans to China with the amounts of USD 21.38 billion and USD 10.21
billion, respectively.15 A part of the funds were invested in renewable
resources, urban transportation, urban construction and environment,
etc. In addition, WB is also the trustee of the Global Environment Facility
(GEF) and cooperates with China in climate financing and technical
assistance by GEF. To be specific, in the climate change sector, WB
programme database shows that the relevant programmes carried out
in China totalled USD 1,352 million (including the programmes where
only part of the capital was invested in the climate change sector), and
was mainly carried out by IBRD/IDA and GEF.16
The local government should also strengthen the cooperation
with multilateral financial institutions. In addition to the bilateral
financial institutions, multilateral climate fund is also an important
15 http://data.worldbank.org.cn/country/china#cp_fin
16 World Bank Database.Available at http://web.worldbank.org/external/
programs/main?pagePK=217672&piPK=64778441&theSitePK=3535340&menu
PK=3535699&category=regcountries®ioncode=3&countrycode=CN&sortb
y=PROGRAM_NAME&sortorder=ASC
Chapter 2 Innovative Financing for Low Carbon Development 125
