WHAT IS REDESSustainable finance can be broadly understood as financing, and institutional and market arrangements to the achievement of strong, sustainable, balanced and inclusive growth. The Sustainable Development Goals (SDGs) are usually used as a framework to determine it. Read More
A proper framework for sustainable finance development may also improve the stability and efficiency of the financial markets by adequately addressing risks as well as market failures such as externalities.
REDES strives to promote sustainable regulation and supervision among Latin American and the Caribbean countries. REDES supports a proper framework for sustainable finance development and sustainable financial regulation and supervision practices in the region.
REDES supports governments in Latin American and the Caribbean (LAC) to understand the challenges posed by financial risks and opportunities stemming from climate change, environmental degradation, governance, and social issues. It aims to support financial regulators, supervisors, central banks, and public agencies on the development of country-level strategies for a sustainable finance market.
REDES aims to enhance the understanding of the financial implications of environmental, social, governance, and climate-related risks by market players, mainly financial institutions, financial regulators, and supervisors. Among other purposes, REDES will seek to influence the generation of proper information in the financial sector and influence the allocation of capital
SCOPE OF ACTIVITIES
Including regional workshops and other initiatives to create awareness and identifying the main challenges regarding ESG and climate risks within the financial sector.
To the beneficiary institutions providing insights, criteria, recommendations, and best practices on public policies aimed to address and mitigate ESG risks and its impact on the financial system, as well as to foster sustainable finance.
Training and Capacity Building
Workshops and other activities to create awareness and understanding of ESG issues and develop sustainability-related analytical capabilities.
Including frontier knowledge and understanding of the current worldwide initiatives and analysis for identification of best practices on ESG risks and policies, reorganization, or applicability of technologies, among others.
WHERE IT IS IMPLEMENTED
REDES will support LAC central banks, financial regulators, supervisors, and any other governmental agencies in two areas. First, strengthening institutional capacity, and, second, disseminating and sharing knowledge with the overall objective of promoting the development of country-level strategies for a sustainable finance market, regulatory, and supervisory practices.
WHY SUSTAINABLE REGULATION?The financial sector increasingly acknowledges environmental and social as significant risk factors. ESG risks can hurt the performance of financial corporations due to exposures on credit, legal, market, operational and reputational risks. Sustainable growth requires public policy frameworks and sustainable regulations, and supervision, conducive to providing certainty for investors and industry. This also means innovative financial instruments and tools to support financial risks assessment stemming from this new landscape.
Sustainable regulation allows overcoming barriers to sustainable finance:
- Mantente informado sobre el financiamiento verde
IDB Invest supports social and priority housing through the first social bond issued by a private entity in ColombiaIDB Invest, a member of the IDB Group, has subscribed to a social bond issued by La Hipotecaria Compañía de Financiamiento S.A. (La Hipotecaria), for 52 […]