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Paris, 29 June 2025 – In a landmark meeting hosted by the Council of Europe Development Bank (CEB), the Heads of the world’s Multilateral Development Banks (MDBs) have pledged intensified joint action to tackle urgent global development challenges, committing to bold reforms and expanded impact.
Amid increasing geopolitical and economic volatility, the Heads reaffirmed their collective commitment to acting “as a system” to deliver greater scale, efficiency, and financing power. The meeting builds on the G20 Roadmap for Better, Bigger, and More Effective MDBs, and aligns with the bloc’s call for deeper collaboration, private sector mobilisation, and strategic reform.
US$650 Billion in New Lending Headroom
Reform efforts since mid-2024 have unlocked over US$250 billion in new lending headroom—bringing the total to US$650 billion for development projects across both emerging and high-income economies over the next decade.
These reforms reflect progress on implementing the G20 Independent Review of Capital Adequacy Frameworks (CAF), with MDBs now optimizing their balance sheets to meet 21st-century development needs.
New Agreements, Unified Operations
Operational coordination is improving: five mutual reliance agreements were signed in 2025 alone, streamlining co-financing, project design, and implementation across institutions.
The Heads highlighted private capital mobilisation as a top priority. Building on encouraging trends, they reaffirmed their focus on local currency lending and foreign exchange solutions to strengthen market resilience.
Tools like the Global Emerging Markets Risk Database (GEMs) were praised for improving credit risk transparency, supporting informed private sector investment in emerging markets.
Major Initiatives to Drive Global Impact
MDBs committed to fast-tracking transformative projects already underway, including:
- Mission 300: Connecting 300 million people in Africa to electricity by 2030.
- ASEAN Power Grid: Boosting energy security and decarbonization for 670 million people by linking national grids.
- Digital Education in Latin America & the Caribbean: Connecting 3.5 million students and training 250,000 teachers.
MDBs are also exploring joint investments in social infrastructure, including health, education, housing, and sanitation—critical sectors for long-term inclusive growth.
New Water Security Push and Finance Report Launch
Recognising water as a core pillar of human development, the Heads pledged to significantly expand support for global water security by 2030. A new Joint Annual MDB Water Security Financing Report will be launched at the upcoming Financing for Development (FfD4) conference in Seville, Spain (30 June – 3 July).
Looking ahead to COP30 in Belem, Brazil, MDBs also underscored the need for deeper climate financing alignment.
From Vision to Execution
Yesterday’s meeting marked a turning point: MDB reform is shifting from concept to execution. With enhanced coordination, modernised financial tools, and unprecedented lending capacity, MDBs are moving in lockstep to deliver results.
From powering communities to transforming classrooms, and securing water to mobilising markets, the world’s development banks are stepping up—together.
