CAF will reach 35% green financing in 2024

CAF -development bank of Latin America and the Caribbean- announced at COP29 in Baku that 35% of its operations will be green by 2024, which constitutes a milestone on its path to becoming the green bank in the region. With these resources, the institution focuses on increasing the climate resilience of infrastructure projects, promoting the energy transition, improving water and sanitation systems, achieving low growth in greenhouse gas emissions, and strengthening the conservation of natural ecosystems and biodiversity.

“We are advancing our goal of becoming the green bank of Latin America and the Caribbean from different fronts: increasing the financing of biodiversity protection and climate change adaptation and mitigation projects and, on the other hand, improving the quality of our projects to incorporate the green components necessary for environmental sustainability. All of this is helping to provide Latin American and Caribbean solutions to overcome the global environmental crisis,” said Alicia Montalvo, manager of Climate Action and Positive Biodiversity at CAF.

These are the financial commitments that CAF has assumed in the last three years:

USD 25 billion for climate action and biodiversity: During COP26 in Glasgow in 2021, CAF announced an investment of USD 25 billion until 2026 for initiatives that promote environmental and climate sustainability in Latin America and the Caribbean. The institution is promoting the mobilization of third-party financing sources, such as green and climate bonds and funds, and strategic alliances for coordinated work between governments, civil society, international organizations, NGOs, and the sector. private. This helps conserve biodiversity, design public adaptation and mitigation policies, strengthen government capacities, and encourage environmentally friendly and inclusive economic growth.

Protection of the oceans: During the Oceans Conference held in Lisbon in 2022, CAF announced that it will allocate USD 1.25 billion until 2026 to finance projects that contribute to preserving, energizing, and promoting the marine and coastal ecosystems of Latin America and the Caribbean. Resources used to design and implement projects and programs that promote the blue economy, with emphasis on the restoration of marine and coastal environments, blue carbon, renewable marine energy, sustainable fisheries and aquaculture, integrated coastal management, nature-based solutions, payment for ecosystem services, ecotourism and improvement of the management of marine protected areas, among others.

Adaptation and risk management in the face of natural disasters: At COP28 in Dubai, in 2023, CAF announced that it will invest more than USD 2 billion a year until 2030 for adaptation to climate change, especially so that the region is better prepared to face disasters and intense extreme natural events. The funds will be used to improve infrastructure resilience, water security, food security, emergency response, disaster reduction with monitoring and prevention systems with cutting-edge technology, erosion control, and coastal protection, among other aspects.

Comprehensive work in the Amazon: During COP28 in Dubai, in 2023, CAF announced an investment of USD 2 billion until 2030 to contribute to a sustainable, inclusive, equitable, and climate-resilient Amazon. CAF funds are intended to strengthen the management of protected areas and their connectivity for the conservation of biodiversity; to promote the bioeconomy and sustainable, inclusive, resilient, and regenerative tourism; to promote resilient, low-carbon, and inclusive Amazonian cities; to improve the living conditions of the Amazonian inhabitants; and to actively work with the Green Coalition of Development Banks for the Amazon to achieve continuous and sustainable financing in the region.

Program to preserve the region's biodiversity: At COP16 in Cali, Colombia, CAF announced a USD 300 million program to conserve and restore the region's key strategic ecosystems, such as the Amazon, the Atlantic forests, the Pantanal, the Chaco, Patagonia, Antarctica, and the Humboldt Current, among others. The project will also mobilize more financial resources and improve coordination between local governments, the private sector, and civil society. Additionally, by 2030, 10% of CAF financing will be allocated to biodiversity preservation initiatives.