European DFIs - EDFI

🚆Full Speed Ahead in September!   As summer fades, we're moving ahead with our EDFI’s three-pillar strategy, designed to strengthen the voice of European DFIs in development finance across the globe.    **Strategic Focus** 🔹Promoting Development Impact and Operational Efficiency: We're advocating for improved regulatory frameworks and sustainable finance regulations to enhance sustainable finance practices, focusing on development impact and operational efficiency. 🔹Accelerating Collective Mobilising Power: We’re supporting the design and implementation of private capital mobilisation strategies of DFIs. 🔹Improving the EDFI Membership Network: We're reinforcing the structure and practices within the EDFI Membership Network to foster creativity, innovation, and focused action. 🔹 Intensifying Partnership with the European Union**: We're (i) contributing to setting sustainable finance standards that contribute to the growth of impact investment, (ii) providing innovative investment facilities in the global development finance architecture, and (iii) leveraging the EU's geopolitical and economic weight to defend multilateralism, democracy, and free markets.   **The EDFI Strategy Builds on Highlights from 2023** 🔹Record Investments: European DFIs achieved €9.6 billion in new investments, elevating our total portfolio to an impressive €53 billion. 🔹 Climate Action: New financing for climate mitigation and adaptation surged by 16% to €3.6 billion. 🔹 Gender Equality: Investments that actively supported gender equality soared by 37% to €2.3 billion.   We look forward to working with our partners to mobilise private finance for sustainable development in developing countries. Let's drive change together! 🌍💪   Read more about the EDFI Strategy 2024-2027.   #DevelopmentFinance #SustainableDevelopment #ClimateAction #GenderEquality #GlobalPartnerships #EDFI

Congratulations to Leslie Maasdorp, the new Chief Executive Officer of British International Investment, an EDFI Association member. We look forward to gaining from his leadership in the field of development and climate finance in emerging markets.   Special thanks to outgoing BII CEO Nick O'Donohoe for his commitment to the DFI cause and his service to EDFI. #EDFIs #sustainablefinance

👏🖋Congrats to DEG on the signing of its first guarantee programme with the EU under #EFSD during the #HamburgSustainabilityConference. What a week: The EDFI network had three other EU-EDFI EFSD guarantee signings last week: 🖋 EDFI MSME Platform PLUS, valued at €255 million;  🖋 EDFI Carbon Sinks, totalling €366 million; and   🖋 FMO’s DFCD Aya Programme, a €105 million triple-A EU guarantee which enables a €240 million top-up to DFCD’s Land Use Facility.  European DFIs and EDFI Management Company are now at more than €700 million of EFSD guarantee facilities and counting. 🤝 The signings show how collaborative efforts mobilise capital for sustainable and pioneering solutions amid geopolitical shifts and economic volatility. #TeamEurope #EDFIs #teamdeginvest

Looking back at a productive week, in which our EDFI Management Company had organized its corporate days. An excellent gathering of development finance professionals. With the European Commission, EDFI MC and FMO - Dutch entrepreneurial development bank signed guarantee contracts for a total of 726 million Euro. These guarantees will be a game changer for our work in climate mitigation, climate adaptation and the financial sector in developing countries. Congrats to all the teams that made this happen, including my old team at the Dutch Fund for Climate and Development. At our opening panel, we had an excellent discussion on how much the world needs the pioneering role of Development Finance Institutions, to reduce uncertainty and mitigate the consequences of growing global instability. Thank you Matthieu Bousquet, Roland Siller Nan Li Collins 李楠 Fernando Jiménez-Ontiveros Charles-Antoine Janssen for contributing your knowledge and insights to this event! European DFIs - EDFI

Looking forward to this afternoon at the EDFI Management Company Corporate Day!

🎓 Congrats to employees of EDFI Association member DFIs who took part in two courses offered in September from the #EDFIAcademy: 🌾 A two-day 'AGRI' course earlier in the month welcomed mainly investment and portfolio officers to take a deep dive into how international agribusiness works ‘from farm to fork’, with specific reference to development, lending, and investment. 🏦 Another course explored project finance debt restructuring which included interactive case studies. Taking part were European DFI front office staff, middle office, and support staff, as well as those in credit and portfolio management. 📆 Coming in October: Courses on #Fintech, Leadership as well as a introductory training for new staff. #developmentfinance #agfifinance #EDFIacademy

A great example from Norwegian DFI Norfund deploying government funding to finance Ukraine’s urgent investment needs.   That commitment helps with Ukraine reconstruction by leveraging the private sector to help rebuild Ukraine’s economy.

🌍 How can concessional finance act as an as enabler for mitigation and adaptation finance?   EDFI General Manager David Kuijper gave his insights as a panellist who tackled the question this week at the ESMT Berlin’s Expert Forum Adaptation & Mitigation Finance in Berlin.   During the panel, moderated by Managing Director at Convergence Blended Finance Chris Clubb, David shared his thoughts on the complex landscape of climate finance and private investment mobilisation, showcasing both progress and challenges faced by European Development Finance Institutions:   ➡ Climate Finance and Mobilisation: EDFIs have made big strides, topline investment figures show - In 2023, EDFIs mobilised €1.3 billion in private climate finance, accounting for about 30% of all private capital mobilisation by EDFIs. - €350 million of this amount supports adaptation efforts, either exclusively or alongside mitigation aims. - From their own balance sheets, European DFIs invested €3.6 billion in climate finance in 2023, representing 38% of all their new commitments.   ➡ Targets and Growth: Climate finance shows steady upward movement - Most EDFIs have set targets for climate finance, aligning with the EDFI Climate Statement (see link in comments) -The share of climate finance as a proportion to total investment from EDFIs has doubled since 2020   ➡ Challenges in Blended Finance: Bottlenecks detected when implementing BF facilities - Lack of external credit ratings of blended finance structures for senior partners (or investors), as rating agencies show little interest in these facilities. - Complexities and uncertainties within regulatory frameworks which lead to misalignment between advisors on risk-sharing structures. - Limited access to the GEMS database, hampering risk assessments for private investors. - Slow deployment of funds, particularly in infrastructure projects.   ➡ Regulatory Considerations - The shift from E&S standards to regulation in 'mitigation and adaptation' finance requires ongoing monitoring of how blended finance approaches may be impacted. - EDFI sees upside in a EU Commission High Level Expert Group recommendation (see report link in comments) to create a dedicated EU legal framework for de-risked public-private transition and/or sustainable funds in low- and middle-income countries.   ➡ Future Directions: How to improve, replicate blended finance ‘experiences’ - Engage more with rating agencies to provide guidance on rating blended finance facilities. - Ensure DFI involvement in the UN Financing for Development Conference 2025 to address barriers to mobilisation.   #blendedfinance #climate #mitigation #adaptation #climatefinance #climateaction

📰 Impressive news from the EDFI member in Denmark – IFU. They just released a new report showing the impact of its Danish SDG Investment Fund. 👍 The fund is fully invested with 27 private sector investments in developing countries, with nearly 1/3 of investments made in Africa. 🌍 Real-world impact in figures: ✅ 1.2 million patients served, primarily in Africa ✅ More than 1,800 MW of renewable energy installed ✅ 100,000 smallholder farmers supported ~5️⃣ to 1️⃣ :The fund's public-private partnership model is a game-changer: For every 1 Danish kroner of public funds invested, close to 5 kroner of private capital has been mobilised. 📈 Macroeconomic impact in numbers: • 40,000 jobs supported • DKK 5.3 billion in domestic purchases • DKK 3 billion in employee wages • DKK 1 billion in corporate taxes On top of that, significant improvements were reported on ESG management across invested companies, which includes: • implementation of a written sustainability policy; • implementation of an environmental and social management system; and • a written stand against corruption. 🔊 As Lars Bo Bertram, CEO of IFU, says: "The impact report illustrates very well the concrete impact that our investments have on local living conditions, and how they support the realisation of the global goals… We are proud to contribute to the global agenda for a sustainable future.” ℹ Read more about the NEW REPORT in the IFU LinkedIN post below. 💪#SustainableInvestment #SDGs #ImpactInvesting #DevelopmentFinance #DFIs

Just got back from some time off and noticed a recent piece by the Financial Times by Brussels-based FT reporter Alice Hancock. She analyses the situation faced by private-sector-focused Development Finance Institutions in Europe as they navigate the EU sustainable finance regulatory framework. The story quotes Michael Jongeneel (he/him), CEO of CEO European DFIs - EDFI member FMO - Dutch entrepreneurial development bank. He shares that "the rules penalise DFIs by not recognising overseas investments as sustainable under its 'green asset ratio', an EU calculation intended to show what proportion of a bank’s assets can be considered climate-friendly", the FT reports. Alice notes this 'GAR' is increasingly used by institutional investors trying to meet environmental, social and governance criteria. EDFI chair Luuk Zonneveld also was quoted, warning against “setting the bar too high”. He added: “We run the risk that impact investing slows down to such an extent that Europe’s influence on standards . . . in developing countries will also wane, effectively reversing progress already made.” 🔎 Have a read: https://lnkd.in/gqFbb3qP