Heads of Multilateral Development Banks Advance Joint Agenda Under CEB Leadership

The meeting highlighted a range of significant achievements in 2025, reflecting how MDBs are enhancing joint delivery, transparency, and operational effectiveness.

The Heads of Multilateral Development Banks (MDBs) convened this week under the 2025 Chairmanship of the Council of Europe Development Bank (CEB) to assess joint progress and chart a course for continued collaboration. Meeting for the final time under Governor Carlo Monticelli's leadership before the chairmanship transitions to the Asian Development Bank (ADB) in December, the Heads underscored their commitment to working "as a system" to scale up development impact, financial innovation, and cross-institutional coordination.

The gathering built upon the MDB Viewpoint Note of 2024 and the workstreams outlined in the G20 Roadmap for Better, Bigger, and More Effective MDBs, reflecting an evolving global consensus on the need for MDBs to modernize their operations while remaining aligned with the Sustainable Development Goals (SDGs) and climate action frameworks.

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Key Deliverables Reviewed: Reports, Financial Transparency, and Sector Collaboration

The meeting highlighted a range of significant achievements in 2025, reflecting how MDBs are enhancing joint delivery, transparency, and operational effectiveness. Among the major outputs:

1. Joint G20 Report on MDB Reform Progress

MDBs presented a comprehensive progress report to the G20, detailing system-wide reforms and institutional advancements. The report documents collective efforts to:

• Increase lending capacity through capital optimization strategies

• Enhance cooperation across institutions

• Mobilize private finance through de-risking instruments

• Improve measurement of development outcomes

This report is a milestone in demonstrating accountability to G20 shareholders and advancing the reform roadmap initiated after calls for MDB transformation at previous G20 summits.

2. First-Ever MDB Comparison Report via GRaFF

In a bid to enhance transparency and comparability across MDBs, the newly launched Global Risk and Finance Forum (GRaFF) released the inaugural MDB Comparison Report. This tool provides stakeholders with detailed insights into the financial health, risk management practices, and capital utilization strategies of MDBs, helping to reinforce investor confidence and deepen inter-MDB coordination.

3. Engagement with Credit Rating Agencies

The Heads discussed a note prepared by GRaFF outlining MDBs' unique financial models, asset quality, and risk frameworks, aimed at building trust and understanding with credit rating agencies (CRAs). This engagement seeks to unlock additional financial headroom by encouraging CRAs to recognize the distinct capital adequacy standards of MDBs.

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Sectoral Collaboration: Water Security and Social Infrastructure

The MDBs emphasized their growing joint work in thematic investment areas, showcasing two landmark publications:

- Water Security Financing Report

Launched during the Fourth International Conference on Financing for Development (FfD4) in Sevilla, this joint annual report underlines the MDBs' commitment to climate-resilient water infrastructure and integrated water resource management. It details the collective financing volumes, cross-border initiatives, and impact measurement tools MDBs are using to ensure water access and sustainability.

- Social Infrastructure Report

Titled "Social Infrastructure in Focus", this publication highlights MDB investments in healthcare, education, housing, and water systems — sectors vital for productivity, equity, and resilience. The report emphasizes how social infrastructure not only supports inclusive development but also acts as a buffer against economic shocks and climate disasters.

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Forward-Looking Workstreams: Innovation, Private Capital, and Regional Priorities

The MDB Heads reviewed active workstreams aimed at modernizing financial instruments and expanding development finance. Ongoing initiatives include:

• Mobilizing Private Capital: Through disaggregated credit risk analytics shared in the Global Emerging Markets Risk Database (GEMs) and innovative risk-sharing models

• Originate-to-Share and Distribute Models: Designed to increase capital turnover and attract private sector co-financing

• Mission 300: A flagship initiative to accelerate regional investments and public-private synergies in infrastructure

• Promoting "Reliance Arrangements": Strengthening mutual recognition of due diligence and safeguards among MDBs to streamline co-financing

• Scaling Financial Innovation: Enhancing the use of guarantees, blended finance, and results-based funding

MDBs reiterated their shared commitment to deliver strategic and operational coherence ahead of COP30 in Belém, Brazil (November 2025), where they will support clients in aligning climate strategies with global carbon reduction goals.

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Discussion on Nuclear Energy Trends with IAEA

Following their internal deliberations, the MDB Heads held a high-level exchange of views with Rafael Grossi, Director General of the International Atomic Energy Agency (IAEA). Discussions focused on emerging trends in civil nuclear energy, including opportunities for safe, clean energy deployment in developing countries, capacity-building needs, and regulatory frameworks.

This dialogue reflects a growing MDB interest in exploring low-carbon energy pathways, particularly as part of national and regional energy transition strategies.

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Leadership Transition: ADB to Assume Chairmanship in December 2025

As the Council of Europe Development Bank concludes its tenure, the Heads of MDBs Group extended deep appreciation to Governor Carlo Monticelli for his leadership during a transformative year. Under his chairmanship, MDBs have made significant strides in joint reporting, financial transparency, and thematic cooperation.

The Asian Development Bank (ADB) will assume the Chair in December 2025, bringing to the role a strategic focus on Asia-Pacific regional integration, climate adaptation, and sustainable infrastructure development.

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MDBs as a System for Development Impact

The MDB Heads reaffirmed their shared vision of functioning not as isolated institutions, but as a collaborative system. With joint frameworks, pooled resources, and coordinated strategies, the MDBs are increasingly working as a unified force to address the world's most pressing development challenges.

As the 2025 meetings conclude, the momentum generated under CEB's leadership is expected to carry forward, ensuring MDB cooperation remains agile, transparent, and fit for the future.