Biens publics mondiaux et développement : l'indispensable convergence de deux écosystèmes d'acteurs du financement

Financing global public goods, in particular climate action, is on the verge of being made part of the World Bank's official mandate. This is just the most recent development in a process of convergence between two financing ecosystems: the international ecosystem for financing development, established after the Second World War, and the more recent institutions established to finance the protection of the environment. This convergence process is both inevitable and necessary, but makes it necessary to take a detailed look into the risk that the focus on global public goods could come at the expense of social and economic goals. This paper shows that the institutions for financing development can align all their strategies and their entire portfolio with the Paris Agreement on Climate by making sure that they align with nationally developed long-term low emissions development pathways, thus avoiding trade offs between development and climate, and fostering transformative change in the spirit of Agenda 2030. This can serve as a model for other global public goods. But beyond dedicated development finance institutions, this paper also shows the necessity for a more thorough reform of the whole international financial system. JEL classification: F33, F35, F42, H87.