The Inter-American Development Bank (IDB) expects to focus $150 billion on projects to contain climate change over the next 000 years, the organization said in a statement Thursday. This would involve tripling this type of financing to become the first development bank to comply with the recommendation of the G-20 group of countries.
In 2024, the IDB will assume the presidency of the Multilateral Development Banks (MDBs) and Heads of Regional Development Banks (RBDs). In this role, the IDB will collaborate with the Brazilian Presidency of the G-20 to advance the reform agenda. In its statement, the institution said it will create a program called "Amazon Always" to protect the region's natural wealth. "The IDB Group is committing up to $5 billion in additional financing to the Amazon region over the next ten years for sustainable development projects, leveraging multi-stakeholder and multi-country partnerships and financing," the organization said.
The resources, which will be mobilized with the support of countries as well as through the bank's private arm, IDB Invest, should help Latin America meet its climate change mitigation and adaptation needs. "As home to the Amazon rainforest – the world's carbon sink – and thanks to the significant share of renewables in its energy matrix and the abundance of mineral reserves crucial for the green transition, the region is well positioned to offer solutions to the global challenges of climate change," the statement said.
The announcement was made on the sidelines of the United Nations Climate Change Conference (COP28) taking place in Dubai. "Our reform priorities include focusing on making the Multilateral Development Banks work better as a system by harmonizing our rules and processes, including the continued coordination of climate and nature projects," said IDB President Ilan Goldfajn. "In addition, we will continue to work on financial innovations and the participation of the private sector for financing in these areas. The goal is to help banks achieve the scale and impact needed to address today's challenges," he said.
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