The New Development Bank (NDB)’s "fairer" financial model is in the spotlight on the occasion of its tenth anniversary

President Luiz Inácio Lula da Silva held a meeting with the President of the New Development Bank (NDB), Dilma Rousseff, in Rio de Janeiro, to celebrate the progress made by the “BRICS Bank”.The discussion surrounding the reform of global financial institutions is among the priorities within the framework of BRICS negotiation

By Mayara Souto / BRICS Brasil

President Luiz Inácio Lula da Silva took part in the opening session of the tenth anniversary of the New Development Bank (NDB), held in Rio de Janeiro on the morning of Friday, 4 July, alongside the President of the institution, Ms. Dilma Rousseff. On this occasion, the President underscored the relevance of the 'BRICS Bank' in facilitating reforms of international financial institutions, a matter currently under negotiation for inclusion in the Final Declaration of the BRICS Summit scheduled for this year.

“The New Development Bank (NDB) was established in Brazil during the 2014 Fortaleza Summit, representing a landmark initiative in the collective engagement of emerging economies. Its creation reflects a shared commitment to address the substantial shortfall in financing for sustainable development. For decades, the absence of effective reform within traditional financial institutions has constrained both the volume and the diversity of credit available through our multilateral banks,” stated President Luiz Inácio Lula da Silva. He further underscored the Bank’s strategic role in partnering with the launch of the Global Alliance Against Hunger and Poverty during Brasil’s G20 Presidency last year, as well as its involvement in the BRICS Tuberculosis Research Network.

Dilma Rousseff, who currently serves as President of the New Development Bank (NDB), held the office of President of the Federative Republic of Brasil at the time of the Bank’s creation. She recalled that "the creation of the New Development Bank was not merely an institutional milestone, but first and foremost a far-reaching political declaration of intent and practice".

“We are only at the beginning. During its first decade, the New Development Bank (NDB) laid the groundwork for its institutional development. In coming decade, it is essential that we consolidate our leadership role in fostering equitable, sustainable, and autonomous development within a multipolar world. This entails developing an institution that is not only financially robust, but also polically relevant and transformative," added Rousseff.

Lula underscored the significance of the New Development Bank (NDB) in the international debate on reforming global financial institutions, a thematic priority under the BRICS Finance track. He remarked that “our Bank is not merely a major institution serving emerging economies; it stands as evidence that a reformed financial architecture and a more equitable development model are possible."

The Minister of Finance of the Federative Republic of Brazil, Fernando Haddad, also attended the ceremony and emphasized that the New Development Bank (NDB) has drawn on the experiences of other financial institutions, highlighting its commitment to promoting equity. He stated: "As we mark the tenth anniversary of the NDB, we reaffirm our conviction that it is indeed possible to establish a model of cooperation that is attuned to the specific needs of our countries. May the coming decade be characterized by heightened ambition, strengthened transformative partnerships, and an enduring positive impact for present and future generations", he concluded.

Finance Ministers from other BRICS member countries — including South Africa, India, and Russia — also attended the event. The BRICS technical meeting on Finance is scheduled for this afternoon, following the NDB session and the ministerial meeting on Saturday, 5 July.

Climate Financing

Climate financing, which forms part of the BRICS Final Declaration, was prominently addressed in the ongoing deliberations of both the New Development Bank (NDB) and the broader BRICS framework. According to President Luiz Inácio Lula da Silva, "The recently concluded Seville Conference underscored that the financial resources required to achieve the Sustainable Development Goals (SDGs) remain unrealistic at the pace and scale necessary. Rather than deepening disparities, the New Development Bank bases its governance on equality".

Today, the New Development Bank (NDB) plays an increasingly significant role in advancing a just and sovereign transition. Since its establishment, over 120 investment projects totaling USD 40 billion have been approved in areas such as clean energy, energy efficiency, transportation, environmental protection, water supply, and infrastructure. In Brazil alone, NDB resources have financed more than 20 projects across various sectors and regions, amounting to over USD 3.5 billion. Its prompt response to the severe flooding crisis in Rio Grande do Sul underscores its agility in the face of adversity,” stated President Lula.

NDB’s commitment to allocate 40% of its funding to sustainable development projects is aligned with the Climate Financing Declaration to be adopted at the BRICS Summit. This initiative serves as a catalyst for resource mobilization in the final stretch leading up to COP30, in Belém, at the heart of the Amazon," added the President, who reiterated Brazil’s challenge of reaching USD 1.3 trillion in global climate financing at COP30.

NDB President Dilma Rousseff also emphasized the importance of climate financing and stated her commitment to advance the agenda. “Climate financing, more than a mere promise, must serve as a tangible mechanism to support adaptation, energy transition, and resilience — especially in countries most affected by extreme climate events. The NDB must be at the forefront of this effort, scaling up investments in green infrastructure, clean energy, energy transition, and climate-smart technologies," she argued.

Translation: Michel Emmanuel Felix François (POET/UFC)
Proofreading: Enora Lessinger (POET/UFC)