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

This report examines the role of multilateral development banks (MDBs) in promoting low-carbon procurement within the infrastructure sector, identifying both the opportunities for MDBs to lead the transition and the systemic challenges that hinder the adoption of sustainable practices in developing countries.

• The infrastructure sector is a primary driver of climate change, accounting for 79% of global greenhouse gas emissions, which necessitates the integration of climate criteria into public procurement to achieve Sustainable Development Goals (SDGs).
• Multilateral development banks (MDBs) are increasingly integrating sustainability into procurement policies to meet climate goals, but they face several obstacles, including the limited capacity of borrowing countries to handle complex sustainability requirements, incomplete monitoring systems, and varying market readiness for low-carbon solutions.
• To accelerate the adoption of low-carbon procurement and decarbonize global supply chains, MDBs should implement strategies such as expanding capacity-building for suppliers and borrowers, streamlining internal processes with easy-to-use Green Public Procurement (GPP) tools, facilitating technology transfer via pilot projects, and improving the monitoring of sustainable practices.

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} }