The Role of Multilateral Development Banks for Low-Carbon Procurement in the Infrastructure Sector
This report explores the key role of multilateral development banks (MDBs) in procuring low-carbon infrastructure. MDBs increasingly adopt sustainable procurement practices, but challenges remain. To overcome these, it is essential to build capacities, engage with the market, align procurement with socio-economic goals, and improve monitoring systems.
Key Messages
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Achieving the SDGs demands significant infrastructure investments. Yet, the infrastructure sector contributes 79% of global greenhouse gas emissions. To change course, we need low-carbon, sustainable infrastructure—embedding climate criteria in public procurement from the start.
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MDBs are uniquely positioned to advance sustainable infrastructure! By embedding low-carbon criteria in project financing and supporting capacity building, they can help shift markets and create long-term sustainable development impacts.
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What can MDBs do for low-carbon procurement? Expand capacity building, foster market engagement, and showcase the socio-economic benefits of green procurement.
MDBs play a crucial role in promoting low-carbon procurement in the infrastructure sector. As major infrastructure funders in developing countries, they can lead the shift to sustainable, climate-friendly practices.
The analysis shows that MDBs are increasingly embracing this responsibility. They are integrating sustainability into their procurement policies and practices, seeing it as a key tool to meet climate goals.
However, challenges persist. These include competing priorities, incomplete monitoring of sustainable practices, and limited capacity of borrowing countries to meet complex sustainability requirements. Additionally, the readiness of markets for low-carbon solutions varies.
To overcome these challenges and foster low-carbon procurement in the infrastructure sector, MDBs can
- showcase how low-carbon procurement contributes to socio-economic development priorities,
- expand and improve capacity-building initiatives for borrowers and suppliers,
- streamline internal processes and systems and provide easy-to-use GPP tools,
- engage the market through transparent procurement practices,
- facilitate technology transfer through pilot projects, and
- improve the monitoring of sustainable procurement practices.
By addressing these challenges and implementing these recommendations, MDBs can speed up the adoption of low-carbon procurement in infrastructure projects. This will cut greenhouse gas emissions and help decarbonize key supply chains around the world.
Participating experts
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