National development banks (NDBs) and development finance institutions, which are domestically focused and publicly owned institutions with specific development mandates, are poised to play a role in bridging the investment gap for climate-compatible infrastructure in developing countries. However, delivering on the Paris Agreement will require NDBs to transition from their traditional role as ‘financer’ to ‘mobiliser’ of investment for infrastructure and to be better recognised in the international climate and development finance landscape.
This paper highlights the role of NDBs, drawing from case studies of the Brazilian Banco Nacional de Desenvolvimento Econômico e Social and the Development Bank of Southern Africa. As such, it provides important impetus to the international discourse on decisive climate action.