IDB and IDB Invest Provided $26 Billion in Climate Financing over Five Years

INVESTING IN CLIMATE ADAPTATION CAN SAVE LIVES AND PROPERTY, PREVENTING FUTURE DAMAGE

WASHINGTON, Nov. 14, 2022 /CNW/ -- The Inter-American Development Bank (IDB) and IDB Invest, the IDB Group's private-sector arm, provided more than $26 billion in climate financing for Latin America and the Caribbean between 2016 and 2021. This figure represents approximately 60% of all climate financing in the region from multilateral development banks during this period.

Of the total, $8.3 billion went to climate adaptation and resilience, a priority in a region where the frequency of natural disasters has tripled over the last 50 years. IDB Invest's contribution to adaptation has grown from $400,000 to $1.5 million in the last five years.

According to a recent IDB study, investing in long-term planning for adaptation can save lives and property both now and in the future, and prevent or reduce damages and losses caused by climate change. The IDB estimates that every dollar invested in resilient infrastructure can generate up to four dollars in economic benefits. Therefore, it is crucial for countries to include climate risks in their development planning and prioritize multi-sector actions to boost resilience.

The level of climate finance provided in recent years reflects the region-wide commitment of the IDB Group – which consists of the IDB, IDB Invest and IDB Lab – and cements its place as a leading strategic partner in facing the climate emergency. The bank's commitment is also on display at  COP27, the United Nations climate summit in Sharm El-Sheikh, Egypt, where a senior IDB delegation is in attendance.

At COP27, the IDB delegation is holding bilateral meetings and advancing partnerships. The Bank announced the first regional program to promote electromobility based on green hydrogen in Latin America and the Caribbean. The program, backed by the IDB and the Green Climate Fund (GCF), will provide $450 million in concessional loans and grants to Barbados, Chile, Colombia, Costa Rica, the Dominican Republic, Jamaica, Panama, Paraguay, and Uruguay.

Several leaders from the region attended the first event organized by the IDB Group at COP27, including Gustavo Manrique, Ecuador's minister of environment, water and the ecological transition; Azucena Arbeleche, Uruguay's minister of economy and finance; and Franz Tattenbach, Costa Rica's minister of environment and energy.

SOURCE IDB

Contacts: Javier Salgado, [email protected], [phone]