NDB finances sustainable development and green initiatives

The New Development Bank (NDB), founded by the BRICS member countries Brazil, Russia, India, China and South Africa in 2014, aims to promote sustainable development and infrastructure financing in emerging and developing economies.

Leslie Massdorp, vice president and chief financial officer of NDB, emphasised its focus on supporting sustainable infrastructure projects. He said: “We have over 100 approved projects, and we’ve raised and invested $35 billion.” These projects include the Mumbai Metro and renewable energy ventures in China, showcasing the bank’s commitment to environmental sustainability.

NDB takes a collaborative approach with other multilateral development banks, learning from historical experiences and best practices. Massdorp explained: “We collaborate very closely with the World Bank, Asia Development Bank, European Investment Bank, and others.” Working together allows it to scale up the impact of sustainable finance and infrastructure.

NDB’s governance structure sets it apart. Massdorp said: “The bank has only borrowing members, and all shareholders are also borrowing members.” This arrangement balances the long-term financial sustainability of the bank with the interests of its member countries.

The bank faces challenges in maintaining its high creditworthiness while expanding its membership and operations. Massdorp mentioned the need to “inject fresh capital to leverage resources more effectively”.

China, as a founding member of NDB, plays a significant role in driving sustainable finance and green initiatives. Massdorp noted: “China has a unique planning system that allows it to set long-term objectives and create an enabling policy environment for green finance.” The country’s leadership in the G20 green finance committee reflects its commitment to global climate goals.

Despite geopolitical tensions, sustainable finance remains a common objective. Massdorp highlighted the importance of collaborative efforts between countries, especially China and the United States, to address climate change and build a greener future.

NDB aims to mobilise private sector capital to finance sustainable infrastructure projects. Massdorp explained: “We need to attract institutional investor capital to complement our financing efforts.” The bank is exploring financial instruments and platforms to appeal to institutional investors.