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WHAT IS GREEN FINANCE?

Green finance broadly refers to financial investments flowing into sustainable development projects and initiatives, environmental products, and policies that encourage the development of a more sustainable economy and a range of another environmental objective. Green finance includes climate finance but is not limited to it. Read More


 

SCOPE OF ACTIVITIES OF GFI

Green Banks

Tailored support for National Development Banks (NDBs) to design and promote green financial instruments; Structuring a green financing strategy, including strengthening of its institutional capacity FOR NDBs.

Innovative Financial Solutions

PPPs, interconnected zones, renewable energy, energy efficiency.

Intersectoral Dialogue

Financial Innovation Labs (LABs) to promote dialogue with regulators, capital markets and financial sector stakeholders.



 

WHERE IT IS IMPLEMENTED

Argentina

Promote production efficiency and energy use in SMEs

Brazil

GHG emissions calculation and emission reductions of its operations portfolio
Sustainable Finance Framework
Structuring municipal PPPs in Minas Gerais to standardize and optimize the contracting process
The BDMG Sustainability Bond Framework
Brazilian Lab for Financial Innovation (LAB)
GHG emissions calculation and emission reductions of its operations portfolio
Sustainable Finance Framework
Brazilian Lab for Financial Innovation (LAB)
GHG emissions calculation and emission reductions of its operations portfolio
Sustainable Finance Framework
Institutional innovation and project management process
Brazilian Lab for Financial Innovation (LAB)

Colombia

Greenhouse Gas Emissions mitigation by Renewable Energy Projects in Non-Interconnected Zones (ZNI) - CO-T1409
Financing mechanisms for investment in Energy Efficiency in public lighting, promoting the replacement of low-efficiency luminaires with LED luminaires

Chile

• The Government of Chile is promoting the development of strategies at the national scale to promote investments in Public-Private Partnerships and green private investments, through dialogue tables between the public and the private sector (the “Green Agreement”).

• CORFO will be developing and implementing innovative financial instruments and technical assistance to be deployed through Chile’s first-tier, local, financial institutions to promote private investments in low-carbon projects including renewable energy, energy efficiency and sustainable transport measures.


Mexico

Dialogue for the development of financing initiatives for distributed generation
Potential of energy efficiency and renewable energy investments in the tourism sector
Financial Innovation Labs (LAB Mexico)

Paraguay

Uruguay

• The Government of Uruguay will be working on the promotion of public-private dialogue to identify financial innovation and regulation to support green and Nationally Determined Contribution-related investments.


 

PROJECT MAP

Locate all active initiatives in the region.
 

WHY GREEN FINANCE?

GF scales up public and private investments that provide environmental benefits, through new policies, financial institutions and financial instruments, such as, inter alia, green banks, green bonds, carbon market instruments, innovative financial technologies, labelling, guarantees for PPPs.

Investment in the green economy needs to take place on a larger scale over coming decades in order to achieve the Sustainable Development Goals and the global objectives of the Paris Agreement.



Green Finance allows overcoming barriers to green investment such as:


Regulatory FrameworksRegulatory frameworks not articulated with long-term sustainable economy
Lack of ConflictingLack or conflicting public financial incentives
Investment GapsInvestment gaps in clean and green technologies, finance for sustainable natural resource-based green economies, climate smart blue economy and circular economy.
MisaligmentMisalignment of public sector financing decision-making with the environmental dimension of sustainable development


 

SUCCESS CASES/STORIES

First Certified Agricultural Green bond in Oaxaca

Adoption of a green business model, which allowed it to be competitive in an area that is not very favorable for agriculture [...]

Banco do Brasil is among the 10 most sustainable companies in the world

According to an annual ranking of corporate sustainability performance


 

PARTNERS ON THE GROUND

Who is supporting GFI

This Initiative is being promoted by the IDB with support from the International Climate Initiative (IKI) of the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB).

Furthermore, the IDB has partnered with key determined ‘green’ stakeholders and National Development Banks (NDBs) to design and promote green financial instruments in the Latin America and the Caribbean region.


 
RESOURCES
  • Mantente informado sobre el financiamiento verde

Events


BIODIVERSITY IN ENVIRONMENTAL IMPACT ASSESSMENT

This course provides a knowledge base on accepted good practices for the effective incorporation of biodiversity into the...

Videos


video (1)


Investments with an impact
video (2)


Greening the Financial Markets Across the Two Sides of the Atlantic
Publications


Publication


A Framework and Principles for Climate Resilience Metrics in Financing Operations
Publication


Demystifying Green Bonds: Green Agribusiness Credit Certificates


 

VISIT OTHER INITIATIVES

  • Market Regulators For Development
  • Bioeconomy
  • ESG
  • Private Sector
  • Green Social and Thematic Bonds
  • Financial Mechanisms in Sustainable Energy
  • Green Finance
  • Climate Risk
  • Blue Economy
  • China LAC Financial Instruments
  • Green Bond Transparency Platform
  • LAB

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