The Role of Multilateral Development Banks for Low-Carbon Procurement in the Infrastructure Sector

The report argues that multilateral development banks (MDBs) are critical for shifting the infrastructure sector—which accounts for 79% of global greenhouse gas emissions—toward low-carbon practices. While MDBs are increasingly integrating sustainability into procurement policies, they face obstacles such as the limited capacity of borrowing countries and varying market readiness. The document recommends that MDBs expand capacity-building, improve monitoring systems, and facilitate technology transfer to accelerate the decarbonization of global supply chains.

• The infrastructure sector is a primary driver of climate change, accounting for 79% of global greenhouse gas emissions, necessitating the integration of climate criteria into public procurement.
• MDBs face several barriers to effective low-carbon procurement, including competing priorities, insufficient monitoring of sustainable practices, the limited capacity of borrowing countries to handle complex sustainability requirements, and inconsistent market readiness for low-carbon solutions.
• To accelerate the adoption of low-carbon procurement, MDBs should implement strategies including the expansion of capacity-building for borrowers and suppliers, streamlining internal processes with easy-to-use GPP tools, engaging markets through transparency, facilitating technology transfer via pilot projects, and improving monitoring systems.

APA

Bechauf,, S. E. (2024). The Role of Multilateral Development Banks for Low-Carbon Procurement in the Infrastructure Sector. International Institute for Sustainable Development. https://www.iisd.org/publications/report/multilateral-development-banks-low-carbon-procurement

Chicago

Bechauf,, Sharmila Erizaputri,Ronja. The Role of Multilateral Development Banks for Low-Carbon Procurement in the Infrastructure Sector. International Institute for Sustainable Development, 2024. https://www.iisd.org/publications/report/multilateral-development-banks-low-carbon-procurement.

Wikipedia

{{cite report |last1=Bechauf, |first1=Sharmila Erizaputri,Ronja |title=The Role of Multilateral Development Banks for Low-Carbon Procurement in the Infrastructure Sector |publisher=International Institute for Sustainable Development |date=17 December 2024 |url=https://www.iisd.org/publications/report/multilateral-development-banks-low-carbon-procurement |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bechauf2024role, author = {Bechauf,, Sharmila Erizaputri,Ronja}, title = {{The Role of Multilateral Development Banks for Low-Carbon Procurement in the Infrastructure Sector}}, institution = {International Institute for Sustainable Development}, year = {2024}, month = dec, url = {https://www.iisd.org/publications/report/multilateral-development-banks-low-carbon-procurement}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }