CAF on its way to become green bank in the region, earmarks USD 50 billion with partners over 5 years

CAF—development bank of Latin America—is closing in on its goal of becoming the region’s green bank and a strategic partner in the economic and social recovery plans led by national—but especially—subnational governments. During its participation in the activities around the 9th Summit of the Americas, CAF joined partners in pledging up to USD 50 billion to underpin ambitious climate action over the next five years.

This commitment to address the climate crisis more forcefully was signed by CAF, the Inter-American Development Bank (IDB),the Caribbean Development Bank (CDB) and the Central American Bank for Economic Integration (CABEI). The instrument also contains an interest in improving coordination between institutions and with key partners to mobilize larger private sector investments and advance regulatory improvements that further raise financial flows, in line with the goals of the Paris Agreement.

The institutions also underscored the interest expressed by the U.S. government in aligning efforts and expanding investments in development projects that produce climate benefits for the countries of the Americas, as noted by John Kerry, U.S. Special Presidential Envoy for Climate.

“The challenges to address climate change, protect biodiversity and encourage adaptation and resilience based on the planet’s current context require a coordinated response; thus, so we are very pleased to add strategic partners such as development banks, and also from the United States, to CAF’s goal of promoting green financing and economic and social recovery in Latin America and the Caribbean,” said CAF Executive President Sergio Díaz-Granados.

Díaz-Granados reiterated CAF’s commitment as a partner in sustainable development and regional integration in the meetings he held with the presidents of Chile, Gabriel Boríc; Costa Rica, Rodrigo Chaves; and Peru, Pedro Castillo, among other high-ranking authorities who attended the event.

Subnational governments also play a pivotal role in protecting the environment, which is why CAF, together with the Inter-American Dialogue and the Mayor of Los Angeles, organized the Mayors Summit, in which 15 authorities from the continent shared their experiences, lessons learned and best practices that can be tailored to the context of others. This forum also discussed the migration opportunities and challenges in the region.

Curbing methane emissions was another key issue discussed by leaders who participated in the context of the 9th Summit of the Americas. CAF’s executive president announced that—together with the Global Methane Hub—they will work on structuring a non-reimbursable technical cooperation to implement a strategic plan for Uruguay that sets methane emission targets in the value chains in livestock, dairy, and rice to “simultaneously boost productivity and improve results based on science and successful local practices.”

This week also saw the launch of the 100K CLIMA Initiative, which is expected to create new exchange programs in climate action, energy, technology and social inclusion, led by the 100,000 Strong in the Americas Innovation Fund, and co-sponsored by the U.S. Department of State with private sector partners, including CAF, Grupo Energía Bogotá (GEB), Cementos Progreso and Amazon.

CAF Executive Vice President Carolina España noted: “We are pleased to formally announce our technical and financial support for the 100K CLIMA Initiative, through which we will expand access of students throughout the hemisphere to training and updating programs in climate action, energy transition and other environment-related fields. At CAF, we are committed to opening new educational opportunities and fostering sustainable and inclusive development that puts the needs of all people of the Americas at the center, especially women and the most vulnerable groups.”

The 100K Alliance for Climate Action (100K CLIMA) will build on regional partnerships between industry, governments, and higher education institutions to catalyze climate action and collaboration between U.S. universities and higher education institutions in Latin America and the Caribbean to provide underserved students and faculty with technical and language skills to lead the twenty-first century green economy.