Supporting National Development Banks to Drive Investment in the Nationally Determined Contributions of Brazil, Mexico, and Chile
TOPICS: Climate Change Mitigation and Adaptation, Climate Finance, National development banks, Public Finance
SUMMARY: The Paris Agreement combats climate change through country-defined sustainable development plans, aiming to align financing flows with low-carbon climate resilient growth. National development banks and local financial institutions can play key roles in providing climate financing and supporting implementation of these plans. This study focuses on national development banks and other domestic development finance actors in Latin America and the Caribbean based on the key roles that they play in domestic economic development and their potential to scale up climate-relevant investment and support for Nationally Determined Contributions implementation. They occupy a unique position within the climate finance landscapes of their respective countries due to their proximity to, understanding of, and nuanced relationships with governments and local private sector actors, and their ability to obtain and channel finance from international sources.