Q&A: COVID-era sustainable development needs flexible finance

The COVID-19 pandemic has dramatically reshaped the global economic environment and financial priorities. For development finance, the crisis has created a need for more fluid mobilization of resources while keeping sight of long-term climate and sustainability goals.That has been reflected in the European Investment Bank’s operational plan for 2021, which highlights this need for realignment. Key to providing a long-term base for recovery will be private sector support, international and local partnerships, and projects that reduce inequalities exacerbated by COVID-19, said Ambroise Fayolle, EIB vice president responsible for development and climate policy.Combining a focus on both short- and long-term crises is essential given that the pandemic has highlighted how “everything is intertwined” and the potential consequences of non-sustainable measures, he said.Speaking to Devex, Fayolle explained how EIB is using a wide range of tools and strategies to meet all these needs.This conversation has been edited for length and clarity.In light of COVID-19, how has EIB evolved the way it operates in low- and middle-income countries to also keep tackling climate change and social inequality?In a nutshell, what we have tried to do outside the European Union is similar to what we have done inside the EU; support the real economy, and, as much as we can, health systems.