Mobilizing Funds to Accelerate Climate Action in the Americas
June 09, 2022
The countries of the Americas are taking concrete, meaningful steps to address the climate crisis. These actions include the development of increasingly ambitious Nationally Determined Contributions (NDCs) under the Paris Agreement, as well as national commitments to curb methane emissions, as part of the Global Methane Commitment, eradicate illegal deforestation, and improve adaptation and resilience, among others.
Funding plays a pivotal role in translating ambition into action and yet, as the Intergovernmental Panel on Climate Change explains, “progress in aligning financial flows towards the Paris Agreement goals remains slow, and monitored climate finance flows are unevenly distributed across regions and sectors.”
To address the climate crisis more firmly, the Inter-American Development Bank (IDB), CAF—development bank of Latin America—, the Caribbean Development Bank (CDB) and the Central American Bank for Economic Integration (CABEI) announced today in Los Angeles in a Joint Declaration, in the context of the Ninth Summit of the Americas, their commitment to devote a substantial portion of our respective fundings to climate-related projects, which could total USD 50 billion available to underpin ambitious climate action over the next five years. We will also seek to improve coordination between our institutions and with key partners, in order to mobilize larger private sector investments and advance regulatory improvements that further raise financial flows, in line with the goals of the Paris Agreement. In this connection, we welcome the interest expressed by the U.S. government, through the Department of State, the U.S. International Development Finance Corporation, the U.S. Agency for International Development, the U.S. Trade and Development Agency, and the U.S. Export-Import Bank, in an attempt to align efforts and expand investments in development projects that bring about climate benefits for the countries of the Americas.
Specific actions taken by each financial institution shall reflect the mandates issued by our respective boards of directors and managers, as well as the capabilities of each institution, and may include the following: