An Innovative IFI Operating Model for the 21st Century: A roadmap

Based on the set of discussions convened by CPI in March 2023 under the San Giorgio Group, this paper lays out key products and processes that need to be introduced, reformed, and/or scaled to effectively deploy existing and the needed new volumes of climate finance to EMDEs. The paper focuses on the multilateral development banks (MDBs), recognizing that the institutions differ in mandate, strategy, and geography and some recommendations may only apply to a subset of MDBs. It builds on seminal reports such as the “Songwe-Stern report” by zeroing in on the specific models that can be adopted and scaled with urgency. The report divides its recommended actions under 3 categories: (i) increased focus on the scale of country sector platforms; (ii) deployment at scale of risk-sharing instruments to catalyze private capital; and (iii) business model overhaul of the World Bank and other MDBs.