CAF Presented IDEAL 2022 Report in Buenos Aires

CAF—development bank of Latin America—, together with state-owned Agua y Saneamientos Argentinos (AySA), presented the Latin America Infrastructure Development (IDEAL) report 2022, entitled “Energy, water and health for a better environment.” The event took place on Thursday, December 1 at the Palacio de las Aguas Corrientes and was attended by CAF president Sergio Díaz-Granados, corporate vice president of strategic programming Christian Asinelli, head of AySA Malena Galmarini, and Undersecretary of International Financial Relations for Development Leandro Gorgal. 

Energy Secretary Flavia Royón, YPF Director of Finance Alejandro Lew, Grupo Energía Bogotá president Juan Ricardo Ortega, CAF chief executive Walter Cont, international specialists and CAF executive representatives also participated in the activity.

The report analyzes the role of strategic sectors such as energy, water and public health for the region’s sustainable development, as part of CAF’s commitment to becoming the green bank that supports the economic and productive recovery of Latin America and the Caribbean. To this end, the agency plans to invest USD 25 billion by 2026 and raise sustainable financing from 26 to 40 percent by that year.

“IDEAL is one of CAF’s most important knowledge reports, and was founded with the aim of delving into the current status of our infrastructure throughout Latin America, in the context of the profound impact of global warming on the region. The Latin American continent has emissions in proportion to its economic activity and population. In other words, we are not a region with large emissions, but we suffer the dramatic consequences of climate change, especially in the Caribbean. Our bank has the role and commitment of exposing this situation globally,” said Díaz Granados.

AySA President Malena Galmarini noted: “This is not an expense for us, it is an investment for our communities to have drinking water and sewage facilities. I want to thank CAF for all the support. In Latin America and Argentina it is impossible to develop major works without the required support and international collaboration. No country’s budget can withstand these projects with costs of over one billion dollars. We believe that working on energy, water, health and the environment cannot be done alone. It cannot be done only by one government, nor by one or more international banks, but with the community collectively.”

In line with the decarbonization commitments taken on by the continent, the report analyzes the multiple energy matrices in the region and puts forward initiatives that promote the transition towards a system based on primary sources with lower emissions, a larger electricity share, lower energy intensity and increased carbon capture and storage (CCS) mechanisms, among others.

In the water sector, it reviews the policies, regulations and infrastructure investments in the region, aiming to curb polluting activities, boost the circular economy and promote a more efficient management model focused on the preservation of water resources.

Lastly, the analysis also includes the health sector and its capacity to respond to possible disruptive events, based on the lessons learned during the COVID-19 pandemic.

The report aims to foster tools and mechanisms to transform the current economic paradigm into a sustainable and climate-resilient model that ensures a better quality of life for all Latin Americans and Caribbeans.