19 development banks join efforts in favor of the environment

(Caracas, December 20, 2011).During the 17th UN Conference on Climate Change (COP 17) held in Durban, South Africa, the International Development Finance Club (IDFC) was formed with the participation of CAF - Latin American development bank.

The 19 development banks of the global partnership have agreed to facilitate a new path to the future climate change regime and offer a smart partnership in support of the Green Climate Fund (GCF) and its initiatives. The GCF is a new instrument of government adopted at the COP 17.

IDFC members confirmed their support for the groups working to create initiatives to promote and exploit the resources of the Green Climate Fund and create innovative development solutions in preparation for the launch of the Fund in the next two years.

"IDFC members - Ligia Castro, CAF environment director, said – enjoy the acceptance and confidence of donor and recipient countries because of their strong integration with national and sub-national policies, their historic work for development of infrastructure and industry, and their extensive experience in the field."

"The IDFC believes that a joint work plan between the Fund and international, national and subregional development banks would have a significant influence on global efforts to maintain the goals set by the international community in combating the effects of climate change," Paul Baloyi, vice president of IDFC and CEO of the Development Bank of South Africa, (DBSA), said.

"IDFC members have extensive experience in the field, which they will offer to the Interim Secretariat for the Green Climate Fund to develop programs, policies, procedures, financial products and manage the portfolio," Jacques Moineville, CEO of the French Development Agency (AFD), said.

"Our members have a proven track record of operations involving climate change and managing the associated risks, in accordance with their development mandates," Ulrich Schröder, president of IDFC and CEO of KfW Bankengruppe, said.

Schroeder added, "we are well positioned to help channel funds from the Green Climate Fund into programs and projects in the countries and regions of our mandates. In this respect, we can help the Fund increase its potential for building the capacity of developing countries to implement their mitigation and adaptation actions."

Elvio Lima Gaspar, director of the Brazilian Development Bank (BNDES), said that IDFC members can implement programs "that combat climate change in a timely and efficient way through leveraging, intermediation and channeling of funds (including grants, loans and technical assistance) through established and reliable networks."

"IDFC members aim to significantly increase the funds available from the Green Climate Fund through a range of financing instruments, and assist with the effective mobilization of an expanded private sector contribution to climate protection initiatives," Paul Baloyi said.