The Road to the SDGs

T H E R O A D T O T H E S D G s | P R O G R E S S A N D A C H I E V E M E N T S u Allocating 35% of approval amounts over the coming 5 years to finance environment-friendly projects. IsDB's total financing for the renewable energy sector amounted to approximately US$ 3.4 billion. u Establishing partnerships with international institutions, including Sustainable Energy for All, with which IsDB signed a partnership agreement to launch the "Sustainable Energy for All Centre" in the middle east. u Hosting a platform for MCs interested in expediting SDG achievement in the field of energy. The platform, which was launched during the IsDB annual meeting of 2018, is a framework for company mobilisation and awareness towards achieving SDG 7. u Cooperating with UN ESCWA to issue a follow- up report monitoring the progress achieved by Arab countries towards energy-related SDG achievement. The report was issued on the sidelines of the United Nations Framework Convention on Climate Change, which was held in Madrid in December 2019. It is an important tool to help Arab countries promote policies geared towards improving energy security and enhance resilience to climate change. u Participating in the organisation of workshops and seminars on renewable energy. u Recently joined the "Renewable Energy Policy Network for the 21st Century", which is an organisation pursuing knowledge exchange in the renewable energy sector and the development of relevant policies. The organisation includes in its membership a number of international, academic and private sector institutions. u Financing PPP projects in the area of renewable energy to encourage the private sector to enter this field. u Encouraging MCs to increase the renewable energy share within their energy mixes. The challenges, albeit immense, can be transformed into profitable opportunities in the MC market that boasts a population of 1.7 billion and a value of more than US$ 7 trillion, with expectations of a population increase to 2.2 billion by 2030. There is a fierce race in the technology and innovation area towards reducing the costs of renewable energy and enhancing its efficiency. In that context, IsDB established the US$ 500 million Transform Fund to stimulate innovation in a number of areas, including renewable energy, smart cities and the environment. The fund has already financed several projects. On the other hand, IsDB is working on introducing new financing instruments that would attract investors, in addition to Green Sukuk. We are working on developing a number of environment- friendly projects that would be attractive to investors in the near future, while continuing to help our MCs develop relevant laws, share successful experiences and expand partnerships with MDBs, the private sector, CSOs, universities and research centres. There is an immense responsibility on the G20 nations, i.e. the industrialised countries that represent 80% of the global economy, towards implementing the Paris Agreement on climate change. QUESTION : What would have happened had IsDB not gone through this change and launched a new business model? ANSWER : We live in a fast-changing world where STI, electronic platforms, robots and big data are flourishing. Millions of young men and women enter the labour markets annually. Certain jobs disappear and others emerge. A country, institution or company that fails to make changes in itself and its business model will be left behind and ultimately cease to exist. In this context, the figures for developing countries seem alarming, calling on us to move quickly. More than 800 million people around the world live below the poverty line and the number of school-age children who are not enrolled in school worldwide stands at 57 million. About 2 billion people lack access to potable water, electricity and sanitation. Technological and knowledge development is increasing the gap between North and South countries. The amount of money needed by developing countries to finance infrastructure projects surged from billions to trillions. As such, continuing to address these and other issues with the same business model will never yield different results. Today, we find ourselves faced with only two options: either fragility or prosperity. If MCs continue to rely on government expenditure and the export of raw materials without improving regulatory frameworks, enhancing transparency, building capacity, improving governance, integrating women and youth into development, strengthening the role of the private sector and improving management efficiency, the inevitable result will be higher unemployment, worsening poverty percentages, illegal immigration and economic fragility. The second option represents a prosperous future, and this is the main goal of IsDB's new business model, which views IsDB as a partner of MCs, not a mere financier for them. The relationship between the two sides is a long-term one, ultimately aimed at empowerment and sustained, more inclusive growth. [ 25 ]