CAF is the first multilateral development bank to sign the Framework for Accreditation Agreement with the Green Climate Fund
CAF - Development Bank of Latin America and the Green Climate Fund (GCF) signed an agreement to develop resilient and low-carbon emissions projects in Latin American countries.
Luis Enrique Berrizbeitia, Executive Vice-President of CAF - Development Bank of Latin America and Javier Manzanares, interim director of Green Climate Fund (GCF) signed, within the context of the COP22, a Framework for Accreditation Agreement, which is a legal instrument establishing the basic conditions for working jointly on the use of GCF's resources.
"CAF is pleased to sign this agreement with Green Climate Fund. We hope to expand our association with GCF through regional investments in order to respond to climate change. Currently, CAF's portfolio is focused on financing of sustainable infrastructure, renewable energy, energy efficiency, sustainable transportation, environmental sanitation and agro-industry, among others. It is estimated that by 2020, 30% of the portfolio will consist of "green projects," and this trend will increase, with an estimated 50% of green projects in the portfolio by 2050," affirms Berrizbeitia.
In June, the GCF Board approved a project from CAF to support the development of solar energy in the region of Tarapaca, Chile. GCF will invest USD 49 million in the Atacama Solar Project, co-financed by CAF and other investors. "We are very happy to formalize our collaboration agreement with CAF. Together, we can better address the needs of the region's countries and work on a line of projects for low-emissions, climate-resilient development in Latin America," stated Manzanares.
In total, fifteen accredited entities have signed Framework for Accreditation Agreements with GCF, with CAF being the first multilateral development bank to do so, while other entities are in the process.
In its strategic focus, CAF is oriented toward supporting the region's countries in developing mitigation and adaptation policies to changing climatic scenarios. In the last 10 years, the entity has destined around USD 1.5 billion to green financing. In 2014 alone, the amount reached USD 2.81 billion, representing 24% of the total of the total approvals of CAF for that year. Among the main initiatives that stand out are 45 clean mechanism projects, 600 biotrade projects financed in Peru, Ecuador and Colombia; water and carbon footprint projects for Lima, Quito, La Paz, Fortaleza, Guayaquil, Monteria and Cali, and a vulnerability index in Arequipa, Guayaquil and Sao Paulo.
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