08.11.2021

New project - fostering fiscal policy for climate change

Photo: Tobias Buchberger

At COP26, the German Federal Ministry for the Environment (BMU) and the Inter-American Development Bank (IDB) set up a fund to promote climate-friendly fiscal policies in Latin America and the Caribbean. 

The International Climate Initiative (IKI) of the BMU supports the fund with a financing volume of 17.5 million euros. With these funds, the IDB is implementing the IKI project "Fostering fiscal policy for climate change in Latin America and the Caribbean". 

BMU State Secretary Jochen Flasbarth said at the launch of the project: 

“A strong partnership between Latin America, the Caribbean, and Germany is important for us given the region’s great potential for innovative climate action and fundamental role for achieving our common goals of the Paris Agreement”, said Germany’s State Secretary at the Ministry for Environment, Nature Conservation, and Nuclear Safety Jochen Flasbarth. “I am delighted that my ministry joins forces with the IDB to increase transparency, effectiveness, and efficiency of climate-related fiscal policies in the region.” 

Objective of the project is to contribute to improved transparency, effectiveness and efficiency of climate-related fiscal policies in Latin American and Caribbean countries, thereby supporting the design and implementation of NDCs and LTS in line with the Paris Agreement. In addition to promoting national climate finance strategies and their instruments and the development and implementation of fiscal policy tools and methodologies, the project also supports networking activities of finance ministries in the region.

Read the press release by IDB