The climate financing agreement, signed by the IDB, the CAF, CDB and CABEI, underscores how the institutions will mobilize billions in financing to accelerate climate action in Latin America and the Caribbean.
LOS ANGELES – Today, the Inter-American Development Bank (IDB) reaffirmed its leadership in climate and green financing and signed an agreement with regional development partners to make $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 between the Development Bank of Latin America (CAF), the Caribbean Development Bank (CDB), and the Central American Bank for Economic Integration (CABEI).
The IDB’s ambitious target of 40% 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 $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 will continue to build towards delivering $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 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% of the region’s bond emissions, worth $26.8 billion.
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.
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social, and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance, and training to public- and private-sector clients throughout the region.
Turner, Taos Lee
