WHAT IS CHINA-LAC GREEN FINANCE INSTRUMENTS?The program China-LAC Green Finance Instruments promotes green finance by fostering the institutional capacity building of national development banks (NDBs) and financial market regulators in Latin America and the Caribbean (LAC). LAC institutions continuously learn about successful methodologies and policies from China to support their efforts in the development of local financial systems, including regulation, capital markets, financial instrumentation and risk sharing mechanisms for green finance.
SCOPE OF ACTIVITIES
Disseminating best practices and experiences in promoting green finance among Chinese and LAC NDBs, financial institutions, regulators and other relevant stakeholders. The project utilizes regional networks (e.g. ALIDE - Association of Latin America Financial Institutions) to share knowledge in a multiplicity of forms, from analytical studies, virtual presentations, to the organization of global events that bring together representatives from LAC and Chinese Institutions and regulatory frameworks to foster the development of green finance.
Institutional Capacity Building
The Inter-American Development Bank (IDB) actively supports NBs in the region supporting national strategies to incorporate green financing into their local markets, and to promote exchange of information and experience with LAC financial and capital markets regulators on green finance regulation.
The active fruitful exchange of experiences could not be achieved without intersectoral dialogue channels among the regions, that serve as an entry point for a closer collaboration between the IDB, LAC institutions and the Chinese development finance institutions. In order to promote instruments and lessons learnt, a series of events and webinars are deployed all year-round.
WHY CHINA-LAC GREEN FINANCE INSTRUMENTS?LAC countries face a deficiency of integrated green financing strategies despite vast opportunities for “green” investments. These countries’ capital market regulatory frameworks currently lack the depth and sophistication to encourage private investment and implement green finance at scale. As is the case in China, though, financial market regulators and NDBs in LAC are in a unique position to engage local financial institutions (LFIs) and private investors, align development financing with national priorities, and draw international climate funding to promote and scale up investments.
The "Chinese Green Finance Task Force" is a government initiative that has been successful in stimulating the growth of a green financial market in China. Through its "Guidance on Building Green Financial System", a variety of reforms are being implemented, from national green bond standards to new green funds and subsidy programs to the development of green insurance mechanisms. The result is a booming green finance market that issued more than one-third of green bonds globally in 2016.
The Chinese experience in developing green finance frameworks and mechanisms can therefore prove valuable for NDBs and regulators in LAC who are seeking to develop and integrate new green finance strategies in their countries.
- Mantente informado sobre el financiamiento verde
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