April 11 (SeeNews) - The Inter-American Development Bank (IDB) aims to increase climate change financing to 30% of operations by the end of 2020, which will represent an annual volume of around USD 4 billion (EUR 3.5bn).
The goal, announced Sunday, is for the combined operations of IDB and Inter-American Investment Corporation (IIC), together referred to as the IDB Group. It was approved by the governors of the organisations at the annual meeting of the group in Nassau, the Bahamas.
The bank noted that Latin America and the Caribbean need an estimated climate investment of USD 75 billion to USD 80 billion per year between 2020 and 2030, which is almost three times the current volume.
Its increased climate finance target comes with plans for greater use of innovative instruments for leveraging private sector capital such as green bonds, in addition to loans, technical cooperation grants, guarantees and equity investments.
The objective is subject to demand from borrowing countries and clients and access to external sources of concessional financing, according to the announcement.
(USD 1.0 = EUR 0.876)