Latest update November 15th, 2024 1:00 AM
IDB to scale up climate finance in Caribbean to US$11.3B by 2030
IDB to scale up climate finance in Caribbean to US$11.3B by 2030
Kaieteur News- The Inter-American Development Bank (IDB) and its private sector arm, IDB Invest, are scaling climate and environmental sustainability across Latin America and the Caribbean and by 2030, the bank aims to reach 50% in green and climate finance, while IDB Invest projects 60%, including mobilised private capital, to amplify climate action in the region.
According to a press release from the IDB, by 2030, the IDB and IDB Invest expect to deliver a combined US$11.3 billion in annual climate finance and mobilise another US$6.6 billion. These projections align with the institutions’ commitments in the new Impact Framework, including delivering US$25 billion in adaptation from 2024 to 2030. This adaptation finance amount represents 50% of IDB’s total climate finance target, a proportion the IDB Group will strive to maintain. In 2023 alone, IDB and IDB Invest dedicated US$7.5 billion to climate finance, laying the groundwork for long-term climate resilience.
“These projections underscore the IDB and IDB Invest’s drive to scale climate action in Latin America and the Caribbean,” said Jordan Schwartz, IDB Executive Vice-President, during COP29. “We’re taking concrete steps to ensure that our resources drive real progress, focusing on the regions that need it most and building resilience where it matters.”
According to the press release beyond financing, IDB and IDB Invest are working to drive investment, job creation, and resilience across Latin America and the Caribbean through regional programs such as Amazonia Forever, One Caribbean, and America en el Centro that integrate climate policies with biodiversity conservation. Innovative tools like EcoInvest, debt for climate resilience swaps, and IDB CLIMA reduce capital costs and expand access to sustainable finance, supporting communities and driving inclusive growth.
As outlined in their Viewpoint Note, MDBs are committed to working as a system on climate action, advancing sustainable growth, jobs, and resilience. The recent Joint MDB Climate Finance Report highlights that in 2023 MDBs already exceeded their climate finance projections for 2025, with US$125 billion in direct climate finance and an additional US$100 billion in mobilization. On Nov 12, MDBs announced new 2030 climate finance projections, estimating US$120 billion annually, plus an additional US$65 billion from private sector mobilization for low- and middle-income countries.
Beyond financing, MDBs are also empowering countries to lead their climate agendas through the Joint MDB Long-Term Strategies (LTS) Programme and enhanced country platforms that unite MDBs, governments, and the private sector. The adoption of common metrics on climate results ensures clear tracking of MDB progress and impact. As climate challenges intensify, IDB, IDB Invest, and MDBs remain committed to transparent, sustainable change at scale, setting the stage for a resilient, low-carbon future across Latin America and the Caribbean.
(IDB to scale up climate finance in Caribbean to US$11.3B by 2030)
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