US President Biden has proposed an ambitious plan to reduce US emissions to 50 percent of their 2005 levels by the year 2030. Biden’s plan is targeted only at US emissions, but climate change is a global problem. What would happen to global emissions of CO2 if every country in the world took a similar step? In this blog post we assess the impact of such a plan.
CGD Policy Blogs
The Biden Administration May Join the European Union in a Ban on Financing Fossil Fuels with Development Dollars. Poor Countries Must Be Exempt.
Since taking office, the Biden Administration has taken several steps to address the climate crisis and plans to do more on the international stage. This trend will be in line with an earlier move by the European Union to “stop funding oil, gas, and coal projects at the end of 2021, cutting €2bn (£1.7bn) of yearly investments.” But a blanket ban on fossil fuels is likely to stifle economic growth and make poor populations in Africa even more vulnerable to the impacts of climate change.
As the possibility of a new Cold War between the US and China gains traction in some foreign policy circles, the scale of Chinese development finance has taken center stage. A closer examination suggests the cost to China of this lending is distinctly underwhelming. It would be cheap for the US and Europe to match China’s lending numbers –and in the interest of global development if it was done right.
While reflecting on DFC’s progress in implementing its core development mandate, and confronting the challenges posed the COVID-19 pandemic, we reached out to Senator Chris Coons (D-DE), a lead sponsor of the BUILD Act and a member of the Senate Foreign Relations Committee. We asked Senator Coons for his take on how the newest US development agency is faring and what he hopes to see in DFC’s future.
To cap a volatile week, the countries that own the Inter-American Development Bank (IDB) will likely elect a new president—US citizen Mauricio Claver Carone (aka MCC)—from a field of one. Others have parsed the pros and cons of this outcome given the upcoming US election; here, we look at the priorities and reforms that MCC has floated in the media and reflect on their fit vis a vis the challenges in the region.
CGD colleagues raised questions and concerns at the time of the announcement. In weighing his possibly presidency, an especially salient question becomes: can Claver-Carone deliver a general capital increase (GCI)?
We need to move forward—or backward—in what we expect development finance institutions (DFIs) to do in terms of financing private sector development in the world’s poorest countries.
Think tanks are supposed to float new ideas to make government work better. One such crazy idea that started with Ben Leo and me turned into the US International Development Finance Corporation (DFC). How did this possibly happen? And what might we learn from this experience?
Prompted by the end of 2019—and the imminent launch of the US Development Finance Corporation—this edition of CGD’s DFC Monitor looks back at OPIC’s last five years of lending to identify lessons for its successor.
The US and China Have Very Different Takes on IDA and the Global Fund: Why that Matters for the Future of Multilateral Aid
When it comes to the United States, the reality is that the Global Fund is winning the fundraising game hands down. China, meanwhile, doubled its contribution to IDA—contrast that with the country’s longstanding indifference to the Global Fund. Clearly the world’s most important emerging donor views the multilateral architecture differently than the world’s most important traditional donor does.