ecdpm’s The unprecedented scale of the crisis generated by the COVID-19 pandemic calls for greater empowerment of international, European and regional fnancial institutions for development, development fnance institutions (DFIs) and public development banks. They all need to step up their efforts, to ‘build back better’, in a greener, more inclusive and gender-sensitive manner. This paper suggests ways to do that, adjusting the current business model of fnancial institutions for development to align and coordinate European investments for development. The European Union (EU) and its member states are well placed to help ‘build back better’ by building on their strategic approaches, (fnancial) institutions, instruments and initiatives. To unlock this potential, however, it is important to further strengthen the European fnancial architecture for development (EFAD), in particular by enhancing coordination, joint and complementary investments and approaches among European fnancial institutions and with other development actors and institutions. The paper recommends the creation of enhanced European co-investment vehicles and investment platforms, embedded in the EU’s overall framework, and it explores the focused use of Team Europe and new Team Europe-Partner countries and regions (starting with Africa) for sustainable investment. By San Bilal March 2021 DISCUSSION PAPER No. 294 How European fnancial institutions can work better together for sustainable and green (co-)investment in times of COVID-19 FINANCE Making policies work