Laboratories of Financial Innovation - LABsInnovation is a powerful tool that can help drive transformation in the region by promoting investments in different sectors and enabling progress for economically, socially, and environmentally vulnerable populations. The Laboratories of Financial Innovation, or "LABs", are a multi-stakeholder and bottom-up process promoting dialogue and knowledge sharing between civil society, the private sector, the public sector, and financial and capital market players. LABs are based on concrete deliveries and prototyping, which aims to address bottlenecks, present solutions to leverage private sector investments, develop regulations and expand the use of innovative green instruments in the financial and capital markets.
Green Finance Public-Private RoundtablesGreen finance roundtables outline a long-term agenda for dialogue and joint work between government, regulators, and financial market institutions. The roundtables also advocate for the integration of climate risks and opportunities into the financial system through the development of green and sustainable regulations.
Scope of Activities
Sustainable and Green Finance ▾
Green and Sustainable Bonds ▾
Green Banking/ESG ▾
Risk Management and Transparency ▾
Impact Investment ▾
Sustainable and Green Finance
Exchange of experiences on financial instruments for diverse sectors, including transport, energy, bioeconomy, water and sanitation, agriculture and land use.
Green and Sustainable Bonds
Promotion of instruments and a regulatory framework for developing of a local market for green and sustainable bonds, along with assistance to investors and issuers.
Support to public and private banks in fine-tuning best practices for green banking/ESG, including institutional strategies, methodologies and management systems.
Risk Management and Transparency
Enhance financial disclosure in the financial system and integrate climate, environmental and social risks and opportunities into their business.
Advance the creation of alternative financial instruments to finance investments with social impact, deepening financial solutions for local projects.
Where it is implemented
Laboratories of Financial Innovation - LABs
Development of innovative financial solutions to leverage private investment in projects that may have social and/or environmental elements.
Green Finance Public-Private Roundtables
Roadmap activities identification and objectives definition to integrate climate change risks into financial practices and regulation.
- AR-T1213 - Support for Promoting Risk Mitigation Instruments and Finance for Renewable Energy and Energy Efficiency Investments for SMEs in Argentina with BICE
- CO-L1124 - CTF Energy Efficiency Financing Program for the Service Sector
- CO-T1153 - Development of the potential for Carbon Finance in BANCOLDEX
- CO-T1328 - Support to Structure an Energy Efficiency Financing Strategy Services Sector
- CO-T1332 - Mitigation of GHG Emissions through Energy Efficient Investments Hotels/Clinics
- CO-T1423 - Financing Mechanisms for Private Investments in Energy Efficient (EE) Public Lig
- Design and promotion of a pre-investment facility to scale up private investments in public-private partnerships to promote energy efficiency and renewable energy in municipal infrastructure (Mexico - BANOBRAS)
- Design of a specific ESMS to be applied by a guarantee fund for SMEs (Barbados - CENTRAL BANK OF BARBADOS)
- Development of a Financial Strategy for Renewable Energy and Energy Efficiency (Colombia - FINAGRO)
- Development of a financing strategy utilizing the Energy Savings Insurance to scale-up energy efficiency investments in the tourism sector and the promotion of a pre-investment facility to scale up private green investments in public private partnerships (Mexico - BANCOMEXT)
- Development of a Green Strategy (Brazil - BANCO DE DESENVOLVIMENTO DE MINAS GERAIS)
- Development of an ESMS and Green Line for Bancoldex (Colombia - BANCOLDEX)
- Development of financial instruments for energy efficiency and distributed renewable energy in small and medium-sized enterprises (Brazil - BNDES)
- Development of financial instruments for energy efficiency and distributed renewable energy in small and medium-sized enterprises (Brazil - FOMENTO PARANA)
- Development of initiatives that promote green financing, especially by promoting investments with Public-Private Partnerships in energy efficiency projects (Brazil - DESENVOLVE SP)
- Development of the Energy Savings Insurance (ESI) Program (Brazil - BANDES)
- Development of the Energy Savings Insurance (ESI) Program (Brazil - GOIÁS FOMENTO)
- Development of the Energy Savings Insurance (ESI) Program (Peru - COFIDE)
- Development of the Energy Savings Insurance (ESI) Program and Expansion of Technologies (Colombia-BANCOLDEX)
- Development of the Energy Savings Insurance (ESI) Program in SMEs in the agricultural sector (Mexico - FIRA)
- Development of the Energy Savings Insurance Program (Brazil- BRDE)
- Development of the Energy Savings Insurance Program (El Salvador - BANDESAL)
- Development of the Energy Savings Insurance Program (Mexico-BANCOMEXT)
- Development of the Energy Savings Insurance Program and additional financial instruments for energy efficiency and distributed renewable energy in SMEs (Paraguay - AFD)
- ES-L1132 - Financing of Energy Efficiency in Small and Medium Enterprises
- Gap analysis of the E&S regulations applicable to Fonplata vs. the IDB safeguards and the IFC performance standards (Argentina - FONPLATA)
- ME-T1265 - Support to FIRA for the Implementation of an Energy Efficiency Financing Strategy
- ME-T1266 - Support to FIRA for the Implementation of an Energy Efficiency Financing Strategy
- Promotion of building energy efficiency in housing and cities (Mexico - SHF)
- RG-T2338 - Supporting Institutional Capacity C and D Groups Countries promote Energy Effice (Paraguay)
- RG-T2720 - Support the emission of green bonds (Peru - Cofide)
- RG-T2720 - Support the emission of social bonds (Colombia – Bancoldex)
- RG-T3045 - Building Green Financial Instruments and Systems in LAC from the Experience of China
- RG-X1244 - Support to Banobras with an Environmental and Social Risk Management System (Mexico - Banobras)
- RG-X1244-Support for the issuance of green bonds (Mexico - FIRA)
- RG-X1244-Support the emission of green bonds (Brazil - BRDE)
- Support BANDESAL in adjusting its ESRM System to its second-tier activities (El Salvador - BANDESAL)
- Support the Development Agencies in Brazil in the implementation of the new national regulation on E&S issues (Brazil - ABDE)
- Support the emission of green bonds (Brazil – BDMG)
- Support the emission of green bonds (Colombia - Bancoldex)
- Support the emission of green bonds (Colombia - Findeter)
- Support the structuring of a green financing strategy (Brazil - BANCO DO BRASIL)
- Support to AFEAM with an Environmental and Social Risk Management System (Brazil - AFEAM)
- Support to Bancoldex for the integration of Renewable Energy projects in its Environmental and Social Risk Management System (Colombia - BANCOLDEX)
- Support to Finagro with an Environmental & Social Risks Management System (Colombia - FINAGRO)
- Support to FINDETER with Environmental and Social Risks Evaluation and Management (Colombia - FINDETER)
- Support to FIRA with an Environmental and Social Risk Management System (Mexico - FIRA)
- Support to FND with an Environmental and Social Risk Management System (Mexico - FND)
- Support to the Government of Brazil in the development of a framework of a Sustainability Laboratory (Brazil – ABDE & CVM)
- Supporting the positioning as a Green Bank (Mexico - FIRA)
- TBC-Support the emission of sovereign social bonds (Ecuador - MEF)
Why Public-Private Dialogues?Public-private dialogues allow for strategic positioning to work with the public and private sectors and leverage influence on linkages with governments, corporations and civil society to maximize the impact of planned projects and investments.
As a platform that catalyzes innovation for inclusion in Latin America and the Caribbean, public and private dialogues support ventures and projects with the potential to generate transformational impact on populations that are vulnerable due to economic, social, gender and/or environmental conditions.
Public-private dialogues connect capital resources, stakeholders and knowledge in Latin America and the Caribbean, and between the region and different parts of the world.
Innovation allows to overcome barriers that prevent green investment such as:
- Scarce financing for entrepreneurs.
- Under developed or emerging innovation and entrepreneurship ecosystems.
- High costs of products or services due to insufficiently deployed technologies.
- Lack of culture in the market.
- Diverse points of view and redundant efforts without consensus.
- Regulatory frameworks not articulated with long-term sustainable economy.
- Lack or conflicting public financial incentives for Investments.
- Gaps in clean and green technologies, finance for sustainable natural resource-based green economies, climate smart blue economy and circular economy.
- Misalignment of public sector financing decision-making with the environmental dimension of sustainable development.
- Financial instability due to climate change.
- Reduced asset values and companies’ profitability due to physical effects of increasingly severe and frequent climate and weather-related extreme events.
- Lower ratings by agencies as climate risk factors are incorporated into their credit rating opinions.
- Rapid reassessment of a wide range of asset values through unanticipated or premature write-downs of carbon-intensive industries given an adjustment towards a carbon-neutral economy, prompted by changes in policy, regulations, technology, or market sentiment.
Laboratories of Financial Innovation - LABs
The Brazilian Laboratory of Financial Innovation (LAB) is a collaborative platform to share knowledge, enhance regulatory frameworks, and pilot innovative products in order to advance sustainable finance in Brazil. The multi-sector forum was initiated by the Brazilian Development Association (ABDE), the IDB, and the Securities Commission of Brazil (CVM) in partnership with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. In August 2020, the Brazilian LAB completed its third year working to promote sustainable finance and financial innovation in Brazil. Currently , 232 institutions and 823 members are involved in the effort, up from no more than 50 institutions at the beginning. The work being done at the LAB has been recognized as the only open multi-stakeholder forum in Brazil to promote green finance through interactions between regulators, governmental and non-governmental agencies, civil society, the private sector and capital market players, such as public and private banks. It is based on concrete deliveries and prototyping, which aims to address bottlenecks, present solutions to leverage private sector investments, and expand the use of innovative green instruments in the financial and capital markets.
Green Finance Public-Private Roundtables
The goal of the Green Finance Public-Private Roundtable is to outline a long-term agenda for dialogue and joint work between government, regulators and financial market institutions, and to incorporate climate change risks and opportunities into their business strategies. More information here
Laboratories of Financial Innovation - LABs
Established in 2019, the Mexican LAB is a multisectoral forum led by the Mexican Banks Association (ABM), the Consultative Council of Green Finance (CCFV), and the IDB in alliance with GIZ. The Mexican LAB has successfully scaled the financial innovation dialogue structured in its four working groups: sustainable energy, sustainable transport, sustainable agriculture and green banking. The Mexican LAB developed sectoral roadmaps to identify innovative financial instruments and accelerate public and private sectors investments in sustainable development.
Partners on the GroundThe Inter-American Development Bank has partnered with major "green" players to catalyze new investments in the Latin American and Caribbean region.
This initiative is promoted by the IDB with the support of the International Climate Initiative (IKI), the Federal Ministry of the Environment, Nature Conservation and Nuclear Safety (BMUB) and the Climate Investment Funds (CIF).
Additionally, the IDB has partnered with key "green" players and national development banks (NDBs) to design and promote green financial instruments in the Latin American and Caribbean region.
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