ABDE, CVM, and IDB create Laboratory of Financial Innovation

With representatives of the financial system and capital markets, the laboratory seeks to create long-term financial instruments associated with sustainability.

Balance in the world of green bonds adds up to the US $ 200 billion, with estimates reaching the US $ 150 billion in 2017.

The Inter-American Development Bank (IDB), the Brazilian Development Association (ABDE) and the Brazilian Securities and Exchange Commission (CVM) are launching the Laboratory of Financial Innovation (Lab) on August 03 in Rio de Janeiro.

The LAB is an initiative that is being promoted by the institutions to stimulate the debate and the creation of financial tools that allow the advance of the sustainable development in Brazil.

The launching ceremony will take place during an international seminar on innovative financial instruments and sustainable development. The seminar will be attended by international experts who will discuss experiences with green securities in the international financial market, advances in green financing and the potential of financial and capital market instruments in Brazil to promote sustainable investments and discussions on how investors can position themselves in that market.

Financial Innovations Laboratory is a pioneer in Brazil

The Laboratory of Financial Innovations is being conceived as an intersectoral discussion forum with the presence of financial development institutions (IFDs), private financial intermediaries, investors, specialists, regulators and representatives of key sectors of the economy. The aim is to foster the creation of investment instruments and financial structures that maximize leverage in the private sector and optimize the use of donor funds.

Working groups coordinated by CVM and ABDE will be created to work on three fronts, with the following objectives:

Green Bonds: To broaden the knowledge about this market at international level and to develop and evaluate proposals for intervention in Brazil, such as developing the national green bond market, possible instruments that can stimulate emissions, and align the local market with Best international practices, among others.

Green finance: To build a dialogue with institutions that make up the National Development System to originate, evaluate and test financial innovations that support Brazil’s sustainable development, especially in potentially green sectors such as energy, transport, agriculture, and water.

Financial Instruments and Impact Investments: To identify the role that DFIs can play and the opportunities to develop the capital market and financial instruments to expand the supply of business investments that promote the United Nations’ sustainable development objectives (ODS). The group will also consider the strategic pillars, recommendations, and initiatives of the Brazilian Social Finance Task Force (FTFS) and possible synergies between the Social Finance and SNF mechanisms.

Those interested in following the debate should register here or contact Johan Arroyo Lopez johanl@iadb.org


Launch of the Laboratory of Financial Innovation and International Seminar

When: Thursday, August 3rd, 2017 from 9am – 12:30 p.m.
Where: Hotel Prodigy Santos Dumont (Av. Almirante Silvio de Noronha, 365 – Centro, Rio de Janeiro – RJ – next to Santos Dumont Airport)

About ABDE (www.abde.org.br)

The Brazilian Association of Development (ABDE) was created in 1969 and has as objective to gather, represent, defend and support, organizationally and operationally, the interests of its 30 associates (federal banks, regional and state development banks, public commercial banks with development portfolios, cooperative banks and funding agencies, Finep and Sebrae), representing them in front of the government or in front of any other institution, in order to promote institutional and operational improvement. Its objective is to contribute to the promotion of the country’s sustainable development in the economic, social and environmental sphere.

About IDB (www.iadb.org)

The IDB is the main source of Long Term Financing in Latin America and the Caribbean. Founded in 1959, it has 48 member countries, of which 26 are borrowing members from Latin America and the Caribbean. The Capital Market and Financial Institutions division of the Bank supports governments, developments banks and financial organizations in the region in order to promote financing of productive development in the Region of Latin America through the strengthening of State competencies, the widening of credit lines and the decrease of market failures that the private sector has to face in order to access financing. This task includes a strong program that supports banks in the development of sustainable infrastructure financial instruments.

About the CVM

The Securities and Exchange Commission (CVM) is an autarchy linked to the Ministry of Finance, which supervises, regulates, disciplines and develops the securities market in Brazil. In 2013, the CVM reformulated its institutional strategy and launched its current Strategic Plan, reaffirming values and purpose and defining the Strategic Objectives with a projection for 2023.

Content translated from original source