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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

Green Banks

Tailored support for National Development Banks 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)

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.


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

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

Click icon to 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

LAB

3 years since the establishment of the LAB

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

The bank was rated 1st in the ranking of financial institutions.

Banco do Brasil (BB) was considered the most sustainable financial institution in the world, and ranks among the ten most sustainable corporations in the “Global 100 Most Sustainable Corporations in the World” index, produced annually by the Canadian publication Corporate Knights. The announcement was made this Tuesday (22) during the World Economic Forum, in Davos (Switzerland).

First Certified Agricultural Green Bond in Oaxaca



 

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 to design and promote green financial instruments in the Latin America and the Caribbean region.
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Resources
  • Stay updated on the latest trends of Green Finance

IDB and GIZ sign a collaboration agreement within the framework of the Mexico LAB multisectoral forum

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and the Inter-American Development Bank (IDB) have signed a cooperation agreement for the multi-sector forum México Laboratory for Financial Innovation (LAB) to strengthen the activities of the forum for the promotion of climate finance. The "LAB" is the innovation laboratory dialogue between financial and capital markets to structure and identify ways to implement innovative green and sustainable financial instruments and to promote sustainable best practices for capital markets in the region, in collaboration with development banks and state development agencies, among other actors. For the LAB's Distributed Generation Financing Roadmap, workshops have been held in which more than 180 representatives from financial institutions, commercial and development banks, and distributed solar generation development companies have participated. The LAB seeks to support national development banks, private banks and other actors in the Mexican financial sector to promote debate and the exchange of experiences towards the development of financial innovations that support the sustainable development of Mexico. Based on the agreement, the entities are committed to sharing progress on issues of mutual interest, such as the results of relevant initiatives and studies to nurture debate and exchange of experiences in the field of green finance between institutions and sectors of the platform, as well as the next steps for the cooperation. The signature took place at the virtual Forum "Green and Inclusive Financing" on November 19th, with the aim of presenting the cooperation between GIZ and IDB at the multi-sectoral forum "Financial Innovation Laboratory Mexico". The Green and Inclusive Financing Forum organized by GIZ Mexico is a national, regional and international event that aims to • Present the actions that GIZ Mexico has carried out and is currently carrying out with implementing partners and counterparts from the public and private sectors in the field of Sustainable Financing • Generate a venue for meeting and dialogue between key actors on progress, trends, and possible synergies for the mobilization of financial resources to facilitate a green and inclusive recovery The session was broadcasted live on various digital media channels, including social networks, YouTube and the event website. The agreement signature event was attended by • Roberto Manrique, IDB Representative in Mexico, IDB • Marita Brömmelmeier, Resident Director, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Mexico • Enrique Nieto, Lead Financial Markets Specialist, IDB • Joscha Rosenbusch, Energy Cluster Coordinator, GIZ Mexico And was moderated by Lishey Lavariega, Technical Advisor - GIZ Mexico




 

Visit other Initiatives

  • Market Regulators For Development
  • Bioeconomy
  • Private Sector
  • Green Social and Thematic Bonds
  • Green Finance
  • Climate Risk
  • Blue Economy
  • Green Bond Transparency Platform
  • LAB

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