US$50B to accelerate climate action in Latin America, Caribbean

(GUYANA CHRONICLE)THE Inter-American Development Bank (IDB) has reaffirmed its leadership in climate and ‘green’ financing, and signed an agreement with regional development partners to make US$50 billion available, through 2026, to support ambitious climate action in Latin America and the Caribbean.

The agreement, announced at the Ninth Summit of the Americas, is part of a collaborative effort among the Development Bank of Latin America (CAF), the Caribbean Development Bank (CDB), and the Central American Bank for Economic Integration (CABEI), a release from the bank said.

The IDB’s ambitious target of 40 per cent climate and ‘green’ finance by 2025, and its commitment to align its operations to the Paris Agreement by 2023 make it a climate-action leader among regional development banks. In 2021 alone, the IDB and its private-sector arm, IDB Invest, delivered a record total of $6 billion in climate finance.

“We are excited to continue carrying out the work we announced at COP26 last year, including our commitment to lead with US$24 billion in climate and ‘green’ finance to Latin America and the Caribbean through 2025. We look forward to leading on expanded partnerships, raise ambitions regionally and globally, and open the doors for critical private resources. Investing in a ‘green’ transition today is an investment in the future itself,” said President Mauricio Claver-Carone.

The IDB’s work supports efforts to mitigate disaster and climate risk, and ensure public policies address these actions. This year, the bank will launch a new platform for ministries of finance in the region, enabling the exchange of knowledge and approaches to climate policy, regulatory reform, budgeting, and fiscal reform for climate action.

The bank said it will continue to build towards delivering US$1 billion for the Amazon Initiative at the request of the countries of the Leticia Pact. These funds will support sustainable land use, the bioeconomy, human capital, and sustainable cities and infrastructure, while transversally addressing forest conservation, gender, diversity and institutional strengthening.

The IDB, the release said will continue supporting and promoting sovereign and non-sovereign sustainability and green-bond emissions.

“Our work includes expanding our award-winning Green Bond Transparency Platform, which already covers 73 per cent of the region’s bond emissions, worth US$26.8 billion,” the release noted.

Climate Change is a priority area of Vision 2025, the IDB’s roadmap for achieving recovery and sustainable, inclusive growth in Latin America and the Caribbean.


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