CAF operations will be aligned with the Paris Agreement

CAF -Development Bank of Latin America and the Caribbean- is committing to adopt in 2024 a methodology for Paris Agreement Alignment in line with the methodological frameworks proposed by the development finance community, with a view to reaching an aspirational target to have all its new operations aligned from 2026 onwards.

In addition, CAF reiterated the target adopted in 2021 and endorsed by all its member countries of ensuring at least 40% of its actual financial approvals contribute to climate mitigation and adaptation by 2026. CAF has expressed its commitment to support the region with the green transition and economic recovery agendas to tackle the increasing challenges imposed by climate change vulnerabilities, loss of biodiversity and historic socioeconomic hardships.

"We are building the right alliances with key partners to mobilize financial resources towards Latin America and Caribbean countries that are suffering the devastating impacts of climate change, while hosting 60% of the global biodiversity, which holds potential solutions to these challenges. By working with the GCF, we will be able to support the transition of its members towards low-emissions, climate-resilient pathways, promoting innovative solutions in key sector such as renewables, agriculture, electromobility, financial institutions and biodiversity", said Sergio Diaz-Granados, Executive President of CAF.

CAF's Institutional Strategy 2022-2026 incorporates, amongst other climate relevant issues, financial support, and technical assistance to address Just Energy Transition, Biodiversity and Infrastructure gaps with social inclusiveness. In particular, CAF stresses the urgency for a Just Transition, in the energy sector, as an essential component to achieve the long-term temperature goal and to reach a low GHG emissions model that shares the costs and benefits, while supporting and protecting communities, industries, and workers; in the context of sustainable development and efforts to eradicate poverty and manage fiscal constraints. As this process will take longer in developing countries, CAF will direct financial resources and technical assistance to decarbonization of the energy matrix, bridging the energy gaps in remote areas, while taking advantage of existing resources and technologies.