Keywords: environmental governance, sustainable development, environmental decision making, environmental performance, environmental criteria, MDBs, multilateral development banks, sustainability, project financing, environmental policies
Environmental decision making by multilateral development banks: a theoretical framework for assessing their environmental performance
This paper proposes a theoretical framework for improving environmental decision making and assessing environmental performance of multilateral development banks (MDBs) – a hitherto unnoticed parameter of global environmental governance. A methodology is developed by setting the criteria for exploring the integration of environmental concerns in the financing activities of the best-known MDBs (World Bank, African Development Bank, Asian Development Bank, Inter-American Development Bank and European Bank for Reconstruction and Development). It is argued that the proposed criteria may serve as the basis for further research that will permit researchers (1) to examine the level of integration of the concept of sustainable development in project financing, (2) to acknowledge the similarities and differences between the MDBs' environmental policies and (3) to improve environmental decision- and rule-making in these organisations.