EU Bank commits support for new UN strategy and welcomes reform plans
- Werner Hoyer, President of the European Investment Bank (EIB), meets with UN Secretary General António Guterres in New York to discuss cooperation and the importance of multilateral action.
- EIB pledges support for reaching Sustainable Development Goals under the new UN strategy with proposals to strengthen impact
Werner Hoyer who heads the world‘s largest multilateral lender, is in New York this week for key discussions at the United Nations aimed at supporting international development efforts. Apart from senior representatives of UN agencies, the head of the EU Bank is meeting UN Secretary General António Guterres today to reaffirm the importance of multilateralism and give the EU Bank’s explicit support for the new UN strategy which underlines the importance of partnership with International Financial Institutions like the EIB.
Ahead of the meeting with UNSG Guterres, EIB President Werner Hoyer said: “The EIB Group and the United Nations are guided by the same goal: to improve people’s lives and eradicate poverty by building resilience and stability. Our two institutions and fellow multilateral actors have a major role and responsibility in this task. At a time when multilateralism is being questioned in some quarters, I am in New York to reaffirm the EU Bank‘s support for the UN‘s new strategy and the reforms proposed by Secretary General Guterres.”
Dr Hoyer added, “We all need to inject new rigour and efficiency into the job of development. There isn’t enough public money in the world to achieve the Sustainable Development Goals without strong support from private capital. Global partnerships are key to success. We are looking closely at our own instruments to bring about a new paradigm for development, building on the EU Bank’s strong track record in leveraging private investments. We want to work closely with the UN, other EU institutions, national governments, and partners everywhere to enhance the impact of our financing. We will also discuss new kinds of bonds linked to the achievement of Sustainable Development Goals in the same way as Green Bonds, first launched by the EIB in 2007, have become a crucial asset in catalysing investment for climate action and the environment. We are keen to explore how we can offer more support to the UN and further our existing partnerships with its agencies.“
"We greatly appreciate the role of the European Union and its financing arm, the EIB. With our two institutions working together, there are great gains to be made in mobilizing private sector support for sustainable and inclusive development”, said UN Secretary General António Guterres.
Discussions between Dr Hoyer and UN representatives this week are also expected to focus on proposals from the European Investment Bank to improve its own delivery of European and international development goals - the UN Sustainable Development Goals (SDGs) in particular. The EIB president is laying out how these efforts can be supported through a dedicated EIB Group subsidiary pulling together the EU Bank’s financing for development and possible new SDG-focused EIB bonds. These initiatives will be discussed and developed in the course of 2018.
Examples of EIB initiatives in development:
One example of how the EIB and the UN agencies have been able to complement each other is the Early Recovery Programme in Ukraine, which is already helping thousands of displaced persons and the communities hosting them. In this case, as in many others, multilateralism was paramount for the success of the initiative. Under the initiative the EIB provided loan financing of EUR 200 million while UNDP supported the final beneficiaries, provided for project monitoring and anti-corruption services through a grant. The programme finances approximately 1,000 social infrastructure projects that are of benefit to Internally Displaced Peoples or the communities that are hosting them. The valuable local presence of UNDP and their offices enabled the EIB to develop good relations with local authorities and security services immediately.
The ACP migration package
The ACP migration package aims to tackle the root causes of migration, through a development and financing model targeted particularly at Sub Saharan Africa. The ACP migration package takes in the entire range of projects, from public sector infrastructure (the platforms upon which the private sector is built) through expanding our resources for impact investment by turning the ACP Impact Financing Envelope into a EUR 800m revolving fund. This opens up the EIB for more projects like Senegal River Valley Rice, Africa Mobile Networks, Boost Africa and Novastar. This way, the EIB can reach more people at the base of the pyramid than ever before, but also reach more socially-directed funds, entrepreneurs, start-ups and essential service providers. The ACP migration package is about creating opportunity, in this regard. http://www.eib.org/projects/regions/acp/applying-for-loan/investment-facility/index.htm
Economic Resilience Initiative
The Economic Resilience Initiative was requested by European Union leaders in 2016 . Focused on the Western Balkans and Europe’s Southern Neighbourhood, which covers North Africa and the Middle East, the initiative is substantially increasing EIB financing in these regions: an extra EUR 6 billion in addition to the EUR 7.5 billion already planned.
It will combine support for the private sector, particularly for young people and women, with more investment in socially important sectors like water, health and education. The Bank estimates this additional financing would trigger around EUR 15 billion in additional investments from 2016 to 2020, taking the total EIB mobilisation of investment in the regions to some EUR 35 billion to 2020. http://www.eib.org/projects/initiatives/resilience-initiative/index
UNDP /EIB Group Memorandums of Understanding
The United Nations Development Programme (UNDP) and the European Investment Fund (EIF), part of the EIB Group, signed a Memorandum of Understanding (MoU) boosting cooperation between the two institutions last year. The MoU emphasises the role small and medium size enterprises (SMEs) will play in achieving the Sustainable Development Goals (SDGs). Through UNDP’s SDG Impact Finance initiative (UNSIF) and other efforts UNDP and the EIF will cooperate to support the SDGs and address global challenges such as international migration and refugees, by leveraging the private and philanthropic sectors, and utilising a broad range of financial instruments. http://www.undp.org/content/undp/en/home/news-centre/news/2017/09/20/european-investment-fund-undp-accord-to-boost-cooperation-to-achieve-global-goals.html