BRICS group to channel $100bn towards sustainable development through new bank
Brazil, Russia, India, China and South Africa, launch a the New Development Bank that will channel investments towards sustainable development and infrastructure projects
The BRICS group, made up of Brazil, Russia, India, China and South Africa, has launched a new international bank that will channel US$100 billion towards sustainable development and infrastructure projects.
The New Development Bank (NDB) will have its headquarters in Shanghai and its inaugural president will be from India.
Leaders from the five nations met at their annual summit in Fortaleza, Brazil, last week to finalise their plans and the will provide an initial US$50 billion to capitalise the new bank.
In a statement, the group said: “BRICS continue to face significant financing constraints to address infrastructure gaps and sustainable development needs. With this in mind, we are pleased to announce the signing of the agreement establishing the NDB, with the purpose of mobilising resources for infrastructure and sustainable development projects in BRICS and other emerging and developing economies.”
The group has outlined its commitment to renewable energy and cleantech projects with the aim of curbing their reliance on fossil fuels and promoting climate change mitigation and adaptation.
The bank will also be taking advantage of the booming green bonds market, where Germany has just committed a further €750 million (£594 million), in an attempt to encourage its industrial neighbours.
The announcement came within a few days of the German government providing major investment to the Green Climate Fund. The German government announced it would provide €750m to the new fund, stepping up pressure on other wealthier nations to follow their lead.
