The global aspiration for sustainable development, viz a climate-smart future, has been at the center of discussion among international development partners. The impact of climate change is threatening the environmental ecosystem. Human health and safety, food and water security, aquaculture, socio-economic development, rainfall patterns, and extreme events such as droughts, floods, and forest fires are severe threats from climate change. The global economy is projected to lose more than 18% of its current GDP by 2048 unless action on addressing climate change is taken. Least developed nations, particularly in Africa, Asia-Pacific, and Latin America, face the most significant effects of climate change.

Africa is estimated to lose 5% to 15% of its projected GDP by 2050, with a projected climate adaptation cost of $10 to $30 billion annually by 2030 . At the same time, Asia and ASEAN countries are projected to lose 26.5% and 37.4% of their GDP by 2048 if immediate action is not taken to mitigate the effects of climate change . The story is similar in Latin America, where precipitation patterns are shifting, temperatures are rising, and some areas are experiencing changes in the frequency and severity of weather extremes such as heavy rains. These scenarios suggest that no region is immune to the effects of climate change. Thus, the need to sustain action in building a smart future, particularly among developing nations.

Fundamentally, development finance institutions are critical in building a smart future. Finance, collaboration and partnership, innovative technologies, capacity building, technical assistance, and monitoring and reporting will be essential in shaping development finance institutions’ contribution to achieving a climate-smart future. Thus, the 2023 joint AADFI-ADFIAP CEO Forum will reflect on the urgent need for action on climate change and the critical role DFIs can play in developing countries. Therefore, the conference’s theme is “ DFIs’ Strategic Role towards A Climate-Smart Future.” The Forum will strengthen south-south cooperation and leverage global partnerships to harness strategies and actionable steps that DFIs in developing countries can take toward building a climate-smart future.