The EDB: data on progress towards SDGs will rival the GDP metric
Almaty, 15 March 2024. The Eurasian Development Bank (EDB) participated in the UNECE Regional Forum on Sustainable Development’s side event titled “The Role of Regional Integration in Achieving the SDGs: EAEU and Other Structures.”
During his presentation, Conrad Albrecht, Managing Director and Head of the EDB Directorate of Sustainability, emphasised that the United Nations Sustainable Development Goals (SDGs) represent not just a high-level concept but a new vision for societal development, as well as a system of specific indicators to monitor advancement in each interrelated facet of sustainable development.
Conrad Albrecht contends that the Eurasian Economic Union (EAEU) serves as a clear illustration of how economic integration contributes to the sustainable development agenda and the Decade of Action – the final phase toward achieving the global goals by 2030.
“We believe that, in the near future, data tracking progress toward the SDGs at the country and regional levels will become as important as GDP or the Gini coefficient as a social inequality measure,” he predicted.
Conrad Albrecht suggests that soft regulatory initiatives, such as further harmonisation of regulatory requirements for non-financial and carbon reporting, improved transparency of statistical data, and the exchange of expertise among sustainability experts, have the potential to facilitate a barrier-free mobilisation of financial, technological and human resources for the UN’s sustainable development agenda.
“Our endeavours in Eurasia, alongside the sustainability challenges confronting the region, underscore the necessity for regional decision-making to encompass a balance between social, economic and environmental sustainability and local conditions,” he emphasised.
He further highlighted the urgent need to address the food, water and energy security nexus in certain Central Asian countries grappling with energy and water shortages. These circumstances underscore the interconnectedness of SDG 7 (Affordable and Clean Energy), SDG 6 (Clean Water and Sanitation) and SDG 2 (Zero Hunger), as well as SDG 13 (Climate Action) with its distinct priorities and conditions for attainment. In this context, Conrad Albrecht poised that the member states could significantly contribute to SDG 2 (Zero Hunger) if they were equipped with a reliable transport and logistics infrastructure – a clear objective of regional cooperation. He also reminded that actionable solutions in the realm of economic cooperation in Eurasia are outlined in the EDB’s recent report.
Regarding the financial component and the role of development banks in regional projects, Albrecht pointed out that, according to the UNDP in Europe and Central Asia, the financing gap for achieving the SDGs globally exceeds US $4 trillion, while the annual need for sustainable and climate finance in Central Asia is projected at US $38 billion until 2030.
“By 2030, we need to invest approximately US $228 billion. The role of development banks in this endeavour extends beyond the mere provision of funds from government sources. Simultaneously, we strive to create enabling and low-risk environments for channelling private financial resources, co-financing sustainable projects, ensuring the environmental and social integrity of the projects we finance, and offering technical assistance to market players, including conducting research and analysis to address the current development challenges of our member states,” said Conrad Albrecht.
Discussing the activities of the Eurasian Development Bank, he underscored its recognition of the correlation between integration efforts and the attainment of the SDGs.
“We aim to pool efforts in achieving global objectives and cultivating the requisite expertise to execute large cross-border projects employing complex financial structures. For instance, the EDB is gradually realising its ambition to become a hub for sustainable public-private partnership (PPP) projects within the EAEU and a driver of the UNECE SDG PPP initiative. We have launched a PPP information platform, conducted a series of webinars on cross-border PPP project activities and reached agreements with our member countries to collaborate in this sphere,” he elaborated.
Conrad Albrecht observed that many Central Asian countries find themselves in the “red zone” under SDG 13. Climate change and the risks and opportunities associated with the low-carbon transition significantly impact EDB member states as most of them are highly vulnerable to climate change effects. Some nations still rely heavily on coal-fired generation and need substantial investments in energy infrastructure modernisation, which requires a considerable boost in transition financing from regional entities, particularly through partnerships with international institutional investors.
Albrecht further remarked that EDB member states are committed to fulfilling the Paris Agreement’s Nationally Determined Contributions (NDCs) and some of them (Russia and Kazakhstan) have formulated their low-carbon development strategies. Implementing these strategies entails considerable expenses, and in some cases achieving ambitious climate goals is only possible with international financial backing.
“In this vein, the EDB, as a bank focusing on project finance, prioritises enhancing the resilience of its member states and unleashing the potential of sustainable infrastructure, including renewable energy and energy efficiency. In 2023, the value of green projects in the Bank’s current investment portfolio exceeded US $600 million, with the cumulative total of green initiatives reaching approximately US $1.2 billion since 2018. Renewable energy projects constitute the largest share (68%) of these green initiatives in the current investment portfolio,” he said.
Additional Information:
The Eurasian Development Bank (EDB) is an international financial institution promoting integration and development in its member countries. For more than 18 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. The EDB's charter capital totals US $7 billion. Its portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing, and mechanical engineering. The Bank adheres to the UN Sustainable Development Goals and ESG principles in its operations.
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