Dialogue with the G20 on “Banking for sustainable and inclusive infrastructure”

Dialogue with the G20 on “Banking for sustainable and inclusive infrastructure”. Finance and infrastructure play a crucial role in accelerating growth towards a sustainable, inclusive and high-impact path

Intesa Sanpaolo and Istituto Affari Internazionali (IAI) – as Co-Chair of Think20 (T20) Italy – promoted the webinar “Banking for sustainable and inclusive infrastructure” to foster a dialogue on how the G20 could mobilise the banking sector to support sustainable and inclusive infrastructure.

In order to promote economic recovery, governments begin to promote Recovery Plans with long-term development objectives rather than focusing on temporary measures to support households and businesses affected by the COVID-19 emergency in the short term.

Renovation and maintenance of existing infrastructure, investment in sustainable and inclusive projects require the mobilisation of significant financial resources, both public and private that seem to be more important than ever, given the pressure on public finances due to the expansionary manoeuvres promoted by governments.

During the last G20, the centrality of infrastructures has been an important issue that has assumed a crucial role in the agenda of the Italian Presidency in light of the current crisis due to the COVID-19 pandemic.

It is crucial to be able to improve the enabling environment in which private financial institutions operate in order to close the existing infrastructure gap because the lack of standardisation of regulatory regimes and indicators identifying sustainable infrastructure investments is a major obstacle for private financial institutions. The G20 can advance the international agenda by facilitating more effective multilateral coordination.

“Banks and governments could launch specialized impact funds to mobilise private savings towards investment,” commented Carlo Messina, CEO of Intesa Sanpaolo and Chair of the B20 Finance & Infrastructure Task Force, during the “B20-G20 Dialogue on Finance and Infrastructure for Sustainable and Inclusive Growth” event in July, organised by the B20 Finance & Infrastructure Task Force. 

“The G20” – Carlo Messina continues – “should promote the development of specific growth funds to support SMEs that have exhausted their debt capacity during the pandemic crisis. An overhaul of the financial sector regulatory framework is needed to offer incentive to long-term funding for specific asset classes to support economic resilience during and after recovery”.

In this regard, within the G20 Finance Track, a specific Infrastructure Working Group meets to promote global cooperation in order to improve the preparation, financing and implementation of infrastructure investments that ensure the provision of inclusive and sustainable basic services.

Strategic Partnership between Intesa Sanpaolo and Istituto Affari Internazionali (IAI)

The strategic partnership between Intesa Sanpaolo and Istituto Affari Internazionali (IAI) aims at analysing the challenges of global “geo-franchise”, investigating the main developments and changes in global economic and political balances.

The activities carried out within the framework of the partnership aim to provide analysis and keys to understanding these constantly evolving global dynamics. The project is articulated on three levels: research and analysis; contribution to national and international debate; distribution of research results.

One example of these activities is the volume “Development Finance in Challenging Times”, which brings together contributions from leading international experts – from academia and multilateral development banks – on the opportunities and problems of development finance in a post-pandemic world.

In the book, the authors explore three key areas of development policies that may become increasingly crucial in the coming years:

  • the contribution of the private sector to the achievement of the SDGs
  • climate finance
  • prospects and policies for low-income countries and fragile states.
Who is Think20 (T20)?

T20 serves as the G20 “idea bank” and aims to provide research-based policy recommendations to G20 leaders.

Think20 (T20) is one of the engagement groups (civil society platforms) officially recognised by the G20 and brings together leading international think tanks and research institutes.

For T20 Italy, the Istituto Italiano per gli Studi di Politica Internazionale (ISPI) acts as National Coordinator and Chair, the Istituto Affari Internazionali (IAI) is T20 Co-Chair while Bocconi University acts as T20 Summit Co-Chair.