AIIB and CAF will work together to finance Renewable energy and green projects in Latin America and the Caribbean
October 13, 2022
This agreement aims to facilitate the co-financing of initiatives that promote sustainable development in Latin America and the Caribbean in strategic sectors in common areas of interest.
The Asian Infrastructure Investment Bank (AIIB) and CAF – the development bank of Latin America - have signed a Memorandum of Understanding in which they seek to strengthen development cooperation and catalyze additional resources. The initiative will allow the institutions to maximize the impact of their operations, generating greater value for the countries in the region.
This agreement will promote joint initiatives that contribute to supporting sustainable development and energy transition in the region and will be key to achieving CAF's goal of becoming the Green Bank of Latin America and the Caribbean.
The document signed today will facilitate access to additional resources in the form of co-financing for operations and initiatives that will foster sustainable economic development, create wealth and improve infrastructure connectivity in Asia by investing in infrastructure and other productive sectors. It also will promote regional cooperation and partnership in addressing development challenges by working together in close collaboration.
The Memorandum of Understanding, signed by Gabriel Felpeto, CAF's Vice President of Finance, and Sir Danny Alexander, AIIB's Vice President of Policy and Strategy, comes at a historic moment when the countries of the region are seeking sustainable pathways for energy transition defined within the Paris Agreement, United Nations 2030 agenda and aligned with both institutions corporate commitments.
AIIB’s Vice President of Policy & Strategy Sir Danny Alexander, emphasized the significance of strengthened collaboration ties with CAF in the common members in Latin America to support sustainable economic development and climate change. “ The partnership between the two institutions enables more effective cooperation and allows us to leverage each other’s comparative advantages. In particular, AIIB is eager to learn from CAF’s rich experience in financing infrastructure projects in Latin America”, said Alexander.
CAF's Vice President of Finance, Gabriel Felpeto, said "the region faces great challenges in terms of sustainable development. Our mission as the green bank of Latin America and the Caribbean is to support the countries of the region in responding at the speed these challenges demand and reposition them on the road towards sustainable development. This agreement will enable us to identify and promote investment opportunities in sectors of common interest that will promote sustainable economic recovery and contribute to the fight against climate change.