FiCS, CAF, BNDES and iCS team up for energy transition

Mobilizing energy efficiency investments in emerging and developing economies remains one of the most critical and persistent challenges to achieving the Sustainable Development Goals (SDGs) and the Paris Agreement. Despite the significant economic and social benefits of energy efficiency - such as reduced emissions, increased competitiveness and improved energy security - high upfront costs, fragmented markets and limited access to tailored financial instruments continue to hold back its large-scale deployment.

"For CAF, the energy transition is not just a climate issue; it is a matter of development, competitiveness and giving countries in the Global South the opportunity to grow with cleaner, more affordable and more reliable energy," said Nicolás Mendioroz, senior executive of CAF's Infrastructure Management. "And Latin America has the advantage of having one of the cleanest electricity grids in the world. If we leverage it well, we can attract new industries, create jobs and turn the region into a global hub for green energy and green manufacturing."

Public Development Banks can play a critical catalytic role in addressing these barriers, particularly in emerging and developing economies. With more than US$5 trillion in assets and a deep understanding of local markets, Public Development Banks can mobilize capital and channel resources to high-impact projects. Building on discussions held at COP28, the FIFS Summit in Cape Town and other major international fora, this initiative seeks to establish a dedicated platform for BPDs to collaborate, share best practices and accelerate progress towards global efficiency and sustainability goals.

The launch of this initiative comes at a critical time. Global commitments - most notably the COP28 decision to double energy efficiency improvements by 2030, reaffirmed by the G7 and G20 - have created a renewed political focus on implementation. The Coalition aims to help translate this focus into practical investment and implementation pathways, complementing the broader efforts showcased at COP30 in Belém to support a just and inclusive global energy transition.

Through the FiCS Energy Transition Coalition, we pursue three collective objectives: (1) expand energy access in collaboration with initiatives such as Mission300; (2) integrate energy efficiency into the mainstream and develop guidance on financial instruments for sovereign, concessional and budget-supported projects, building on the PEEB toolkit; and (3) drive industrial decarbonization by supporting Public Development Banks in reducing emissions in hard-to-decarbonize sectors through innovation, policy dialogue and collaboration with partners such as GRA, GSC, GFANZ and Meridiam.

To meet these objectives, the Coalition will work through a variety of national and regional mechanisms, with Country Platforms being an important enabler of coordination and impact. It will also promote financial and technical innovation through the FiCS Innovation Lab and the Global Guarantee Platform, strengthen South-South knowledge sharing, and improve data availability and transparency to strengthen accountability and attract private capital.

To support this work and ensure broad ownership, the Coalition will adopt a governance model that reflects regional diversity. Recognizing the prominent role of the Latin America and Caribbean (LAC) region in global processes leading up to COP30, the first batch of co-chairs will come from the region. Each thematic pillar will be led by Public Development Banks and partners from other regions to ensure balanced representation and allow for the exchange of lessons learned and success factors. Over time, a rotating system of geographic chairs will strengthen cross-regional collaboration and ensure that the nuances and transition priorities of each region are reflected in the Coalition's work.

At COP30 in Belém, we reaffirm our shared commitment to drive a just and inclusive energy transition and invite all Public Development Banks and partners to join us in mobilizing knowledge, capital and collaboration for sustainable energy around the world.