Priorities of financing sustainable development by international financial organizations and development agencies

Abstract

The article examines the current priorities of financing sustainable development by international financial institutions (IFIs) and development agencies (DFIs) in the context of achieving the UN Sustainable Development Goals by 2030 and implementing the principles of green and climate-resilient recovery. The financing policies of institutions such as the World Bank, the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), the Nordic Environment Finance Corporation (NEFCO), the KfW Group, as well as a number of European development agencies are analyzed. Their key investment areas are identified: renewable energy sources, energy efficiency, sustainable agriculture, water management, and climate change adaptation. The financial support mechanisms are summarized, including grants, concessional loans, technical assistance, and the use of ESG standards in the project assessment process. It is shown that most international financial institutions are gradually abandoning financing for fossil fuel-related projects and are setting goals to achieve climate neutrality of their portfolios by 2050 (EIB, World Bank) or even by 2030 (EBRD, NEFCO). Particular attention is paid to the role of these institutions in ensuring the green recovery of Ukraine based on the Build Back Greener initiative. The conclusion is formulated that the systematic implementation of environmental and climate criteria in the activities of international financial institutions contributes to the integration of sustainable development principles into the global financial architecture and the formation of a new model of post-crisis growth.