Private Sector

Private Sector

The private sector has a key role in achieving the UN's Sustainable Development Goals and in supporting solutions that allow everyone to progress economically in a low-carbon world. Investors increasingly require companies in their portfolios to report on sustainability and climate change issues.

Each market sector will need to transform and improve its business models by integrating climate change risks and opportunities.

The IDB Group, particularly through IDB Invest, seeks to provide private sector solutions in Latin America and the Caribbean by supporting companies and projects to achieve financial results that expand the region's sustainable development. Read More

 

Scope of Activities

To prepare the private sector to move towards a low-carbon and climate-resilient economy, we offer:

Advisory Services

Our experts apply their knowledge and experience to provide innovative solutions that enhance the impact of the project in terms of:

Climate & Resilience, Sustainability & MSMEs, Public-Private Partnerships and Gender & Diversity.

Offers added value to sustainable projects, increasing the impact, strengthening ODS and complementing financial products in different sectors such as banking, energy, agriculture or MSMEs.

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Climate Finance

We offer various financial products such as green bonds, green loans, trade and supply chain financing, guarantees, capital investments, among others, in US dollars and local currencies.

Promotion of regulatory frameworks and financial instruments for the development of a sustainable, international and local market including green and thematic bonds.

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Blended Finance

We have a specialized team assessing projects from a different perspective, we are aware of certain barriers in the market and thanks to blended financing combined with advising we can intervene by directing concessional financing in high impact projects.

It offers innovative financial instruments that allow structural market/technology/risk barriers to be overcome. By meeting certain additionality criteria, it could even support projects with more advantageous rates and even accompany them with advisory services.

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Mobilizing Resources

Nowadays, it is just as important to choose the projects on which to invest as it is to choose the right partners to do so.

Our experience in climate and sustainable finance positions us not only as a strategic partner, but also to incorporate a catalytic effect into projects, attracting new investors.

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Sectoral Activities

We support projects throughout the LAC region to promote the use of clean energy, implement climate-smart agriculture, strengthen sustainable infrastructure and expand access to financing for MSMEs by supporting Financial Intermediaries.

Financial Institutions

We support banks, funds, micro financial intermediaries, leasing and factoring companies, among others, with investments and advice to boost a low carbon economy and access to climate financing.

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Sustainable Infrastructure

We offer innovative financial solutions for the development and operation of projects related to sustainable infrastructure, which promote an increase in coverage, quality and efficiency of services in the areas of Clean Energy, Transportation, Water and Sanitation as well as Social and Health.

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Corporate Enterprises

IDB Invest differentiates itself by betting on sustainable, competitive and innovative business models. It is involved in investments that extend sustainable consumption, improve efficiency and productivity, introduce renewable energies and improve in terms of mitigation.

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Where it is implemented

The Private Sector is supported by IDB Invest and the IDB Group throughout the LAC region.

In addition to the headquarters in Washington (U.S.), IDB Invest operates offices in all member countries and additional reinforcement in four Hubs created in the region to facilitate local support.

Andean Countries

The Hub of the Andean countries is in Bogota (Colombia). There are also offices in the other countries of the Andean Region.

HUB:

Colombia
BID Invest Colombia Carrera 7 No. 71-21, Torre B, Piso 19 Edificio Davivienda Bogotá. Tel: + (571) 325-7000

Bolivia
BID Invest Bolivia Av. 6 de Agosto # 2818, Zona de San Jorge La Paz. Tel: + (591) 2217-7739

Ecuador
BID Invest Ecuador: Avda. 12 de Octubre N24-528 y Cordero Edificio World Trade Center - Torre II, Piso 9, Quito. Tel: + (5932) 299-6900

Peru
Calle Dean Valdivia No. 148 Piso 10 Lima 27. Tel: + (511) 215-7800

Venezuela
Av. Venezuela, Torre Principal Banco Bicentenario, Piso 3, El Rosal, Caracas. Tel: +(58-212) 955-2900

Caribbean Countries

The Hub of Caribbean countries is in Kingston, Jamaica. There are also offices in all Caribbean member countries.

HUB:

Jamaica
40-46 Knutsford Boulevard 6th Floor, Kingston. Tel: + (876) 764-0815/0852

Bahamas
IDB Invest Bahamas: IDB House, East Bay Street Nassau. Tel: + (1-242) 396-7800

Barbados
“Hythe” Welches Maxwell Main Road BB17068, Christ Church. Tel: + (1-246) 627-8500

Haiti
Bourdon 389 Boite Postale 1321 Port-au-Prince. Tel: + (509) 2812-5000/5048

Surinam
Peter Bruneslaan 2-4, Paramaribo. Tel: +(597) 52-1201

Trinidad and Tobago
17 Alexandra Street, St. Clair, Port of Spain. +(1-868) 822-6400

Central American Countries, Haiti, Mexico, Panama and the Dominican Republic

IDB Invest has offices in all Central American countries as well as nearby countries such as Mexico and the Dominican Republic. The Hub is located in Panama City (Panama) and there are offices in all the countries of the Central American Region.

HUB:

Panamá
Tower Financial Center, Piso 23 Calle 50 y Elvira Méndez. Tel: + (507) 206-0927

Belice
BID Invest Belice: 1024 Newtown Barracks 101 1st Floor Marina Towers Building, Belize City. Tel: +(501) 221-5300

Costa Rica
Centro Corporativo El Cedral Edificio A. Piso 4 300 mts Este del Peaje Autopista Próspero Fernández Trejos Montealegre, Escazú Apartado postal 1343-1250 San José. Tel: + (506) 2588-8748

Dominican Republic
Calle Luis F. Thomen Esquina Winston Churchill Torre BHD, piso 10, Santo Domingo. Tel: +(1-809) 784-6400

El Salvador
Edificio World Trade Center Torre 1, 4º Nivel Calle El Mirador y 89 Avenida Norte San Salvador. Tel + (503) 2233-8900 ext. 2201

Honduras
Colonia Lomas del Guijarro Sur Primera Calle, Tegucigalpa, Honduras. + (504) 2290-3500

Mexico
Avenida Paseo de la Reforma N.º 222 Piso 11 Colonia Juárez, Delegación Cuauhtémoc México, D.F. 06600. + (52-55) 9138-6200

Nicaragua
Boulevard Jean Paul Genie, de la Rotonda Jean Paul Genie 970 mts. al oeste (M/D) Managua. Tel: + (505) 2264-9140

Southern Cone Countries

The Hub of the Southern Cone countries is located in Buenos Aires (Argentina). There are also offices in the rest of the Southern Cone countries.

HUB:

Argentina
BID Invest Argentina: Esmeralda 130 Piso 17. C1035ABD, Buenos Aires. Tel: + (54 11) 4320-1800

Brazil
Setor de Embaixadas Norte Quadra 802, Conjunto F, Lote 39 Asa Norte Brasilia. Tel: + (55 61) 3317-4200

Chile
Avda. Pedro de Valdivia 0193 Pisos 10 y 11 Providencia Santiago. Tel: + (562) 2431-3707/3719

Paraguay
Quesada 4616 esq. Legión Civil Extranjera – Piso 1 Asunción. Tel: + (595 21) 616-2320

Uruguay
Rincón 640 11.000 Montevideo. Tel: + (598) 2915-3696

 

Project Map

Click icon to locate all active initiatives in the region.

 

Why is it crucial to drive the Private Sector towards Green Transition?

There is a progressive shift in the private sector's perception of the importance of sustainability as a key attribute of business performance. In this regard, the financial impact related to extreme weather events, increasing regulatory pressures, the need to disclose climate-related risks that pose a threat to business, and the growing dissemination of information on the adverse effects of productive activities are key aspects that influence the market's assessment of companies.
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Projects per Sector - Success Cases

From the sustainable and climate aspect, IDB Invest is positioning itself as a key player, strategically supporting projects and sectors that may catalyze the implementation of substantial sustainable economic and social development. Currently, IDB Invest commits 30% of its investments to Climate Finance. Below you will find projects being implemented in the last year:


Sudameris

In the financial sector, the Paraguayan bank Sudameris has been able to adapt the information provided by technological innovation to its business. The financial institution uses the online platform of Global Forest Watch, which offers real-time data to know if a fire threatens any of its investments or if a timber client is trading in species from protected areas, information that is of great value for its risk management plans.

The Rotonda

In Argentina, there is a platform called La Rotonda that brings together producers and rural contractors in what some have called a "uberization of the countryside. This initiative allows a producer to offer or request agricultural services in a direct and geo-referenced way and to save intermediaries in the contracting of each agricultural campaign.

Autopistas Urbanas

Sustainable infrastructure can be significantly enhanced by digital innovation. In transportation, as part of a new collaboration with Waze, IDB Invest is working with Autopistas Urbanas (AUSA) in Argentina, to provide real-time accident data and traffic statistics, in order to better understand the impact on road safety.

Trinidad and Tobago Mortgage Finance Company

IDB Invest executed a partial credit guarantee to support the issuance of a bond backed by mortgages from Trinidad and Tobago Mortgage Finance Company in order to expand its mortgage offering and continue to provide financial products focused on the specific needs of the most disadvantaged populations.

Millicom

Long-term financing to Millicom, a telecommunications company present in several Latin American countries, through the subscription of a bond to modernize and expand 3G and 4G networks in Bolivia, Colombia, Costa Rica, El Salvador, Honduras, Nicaragua and Paraguay.

Pirapora Solar Energy

IDB Invest provided a loan guarantee to support a solar energy project in Pirapora, in the state of Minas Gerais. The guarantee supported the issuance of long-term infrastructure bond in the local market, including a "bridge loan" provided by IDB Invest for the construction of a second phase of the complex.


 

Partners on the Ground

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Resources
  • Stay updated on the latest trends of Green Finance

First “taxonomy” created to identify private sector solutions for investing in climate adaptation and resilience

NEW YORK, The Lightsmith Group (“Lightsmith”) today released the ASAP Adaptation Solutions Taxonomy (“ASAP Taxonomy”). This is the first peer-reviewed set of definitions and eligibility criteria specifically focused on climate adaptation solutions being offered by private sector companies. The ASAP Taxonomy was developed through the Adaptation SME Accelerator Project (“ASAP”), which is supported by the Special Climate Change Fund (SCCF) of the Global Environment Facility, Conservation International, and the Inter-American Development Bank and IDB Lab. It builds upon existing definitions and international standards around climate finance, such as the European Union’s Sustainable Finance Taxonomy, the Intergovernmental Panel on Climate Change, the Task Force on Climate-related Financial Disclosures (TCFD), and the UNFCCC Climate Technology Centre and Network (CTCN) Taxonomy, among others, in order to foster harmonization and uptake. The ASAP Taxonomy has been reviewed by a panel of global experts and is actively being applied to identify hundreds of private companies across the globe that offer climate adaptation solutions. “We need practical solutions to help us adapt to climate change now,” said Jay Koh, Managing Director of Lightsmith. A recent study by the University of Cambridge shows an additional $100 billion of global costs annually linked to extreme weather events – such as floods, heatwaves and droughts – can be expected by 2040. The UN Environment Program estimates the cost of adapting to climate change in developing countries alone could rise to $140 to $300 billion per year by 2030, and between $280 and $500 billion per year by 2050. Despite the fact that 75% of all national climate plans under the Paris Agreement reference climate adaptation, adaptation received less than 6% of the total $579 billion of climate finance in 2017/2018, with perilously little from the private sector, according to the Climate Policy Initiative. “Identifying companies that can help manage drought, flood, wildfire, supply chain disruption, disease, and other climate impacts is a critical first step to building resilience to climate,” added Koh. “Most of these companies do not call what they do ‘climate change anything’ but if we can find them, we can invest in and scale up their solutions as the challenge of climate change grows.” ASAP recognizes the important role that small and medium-size enterprises (“SMEs”) can play in supporting climate adaptation. SMEs generate at least 45% of employment and as much as 33% of GDP in developing countries. The ASAP Taxonomy offers a systematic approach to identify SMEs that produce technologies, products, and services that support adaptation to climate change (“Adaptation SMEs”) and enables investors and governments to target investment and support. “The timing of the new ASAP taxonomy is crucial. With SMEs in developing regions and especially Latin America and the Caribbean confronting both the economic fallout of the pandemic and worsening climate impacts, we should take full advantage of this new taxonomy to support them to continue to capitalize on the business opportunities to develop solutions for climate adaptation and resilience,” said Graham Watkins, Climate Change Division Chief of the Inter-American Development Bank. The ASAP Taxonomy specifically focuses on SMEs in developing countries but can be easily extended to apply to businesses of all sizes, operating in all geographies. The ASAP Taxonomy is comprised of (i) a definition of an “Adaptation SME”, (ii) eligibility criteria to determine what types of companies qualify as an “Adaptation SME”, (iii) classification systems for climate adaptation solutions, and (iv) a results framework to measure, monitor and report on climate adaptation- related outcomes. The ASAP Taxonomy can be used by investors, funders, companies, and other stakeholders to: -Identify climate adaptation investments, thereby enabling more accurate tracking and reporting; -Sets out a menu of classification approaches for categorizing, tracking, measuring and reporting climate adaptation solutions based on the technology, product, service provided; -Inform companies on how their solutions may support climate adaptation and resilience; -Provide initial guidance on approaches for measuring companies’ contributions to climate adaptation; and; -Create a framework that can be used to align climate adaptation and resilience investment strategies with international standards and definitions. “The release of ASAP Taxonomy is an important contribution to increasing private sector investment in climate change adaptation. Through a common language, the taxonomy will help classify climate adaptation business solutions and eventually support investors and SMEs understand market opportunities and track investments. The taxonomy’s focus on Adaptation SMEs will contribute to climate resilient and inclusive global economic recovery from the COVID-19 pandemic”, said Chizuru Aoki, Lead Environmental Specialist and Manager of the Least Developed Countries Fund and the Special Climate Change Fund. “The ASAP Taxonomy is a significant step toward building the case for climate adaptation as an investment asset class and mobilizing much needed capital flows to adaptation-focused SMEs,” said Agustin Silvani, Senior Vice President of Conservation Finance at Conservation International (CI). “Both investors and businesses will benefit from a better understanding of the scope of climate adaptation investing. CI congratulates Lightsmith and all involved in the production of this valuable resource.” By using the ASAP taxonomy, investors, funders, companies, governments, and policymakers can enhance the supply and uptake of climate adaptation solutions globally, and especially in the places where they are needed most. The full ASAP Adaptation Solutions Taxonomy can be downloaded here.


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