The Inter-American Development Bank (IDB) hopes to allocate $150 billion to climate change mitigation projects over the next decade, the organization reported in a statement Thursday. This would mean tripling this type of financing to become the first development bank to comply with the recommendation of the G-20 group of countries.
In 2024, the IDB will assume the presidency of the Groups of Multilateral Development Banks (MDB) and Heads of Regional Development Banks (BRD). In this role, the IDB will work with the Brazilian G20 Presidency to advance the reform agenda. In its statement, the institution explained that it would launch a program called “Amazonía Siempre” to protect the natural wealth of this region. “IDB Group is providing up to $5 billion in additional financing to the Amazon region over the next decade for sustainable development projects, leveraging partnerships and financing from multiple stakeholders and countries,” the organization said.
The resources, mobilized with the support of countries and through the bank’s private arm, IDB Invest, are intended to help Latin America meet its climate mitigation and adaptation needs. “As home to the Amazon rainforest – the world’s carbon sink – and thanks to the important contribution of renewable energy to its energy matrix and the abundance of mineral reserves critical to the green transition, the region is well positioned to provide solutions to the global “Offering climate change challenges,” the statement said.
The announcement was made as part of the United Nations Climate Change Conference (COP28), which is taking place in Dubai. “Our reform priorities include focusing on making the multilateral development banks function better as a system, harmonizing our rules and processes, including continued coordination of climate and nature projects,” said IDB President Ilan Goldfajn. “In addition, we will continue to work on financial innovation and private sector participation in financing in these areas. “The aim is to help banks achieve the scale and impact needed to address current challenges,” he explained.
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