Green bonds in the emerging multilateral development banks: A (sufficient) alternative to catalysing private capital?

Abstract

The article aims at discussing the rise of the green bonds in the context of the multilateral development banks, by problematizing their threats and potentialities to be an alternative to the existing financing system within the sustainable development agenda. It scrutinises the development rhetoric behind the emergence of multilateral development banks in the Global South, specifically in the Asian context, and attempts to foster alternatives to the Bretton Woods institutions. The two largest initiatives in that sense – the New Development Bank and the Asian Infrastructure Investment Bank – started in Asia and also target countries in the region, giving the growing influence of China and the enhancement of interregional cooperation through the BRICS countries, currently led by China, India and Russia. The paper argues that there is limited scope for the promised innovations in both project assessment and the role of private capital, given the prioritisation of infrastructure as the premise to achieving the right to development among emerging and least‐developed economies. The research departed from the quantitative and qualitative analysis of the projects funded by the New Development Bank and the Asian Infrastructure Investment Bank, from their inception until 2018, considering the approach that such institutions have taken to the social and environmental standards from their normative framework.