Latin America and the Caribbean Facility for Greening Public Development Banks and the Financial Sector

To date, only a few Public development banks (PDBs) in Latin America and the Caribbean are committed to net-zero strategies to deliver direct results over the Paris Agreement goals. Therefore, the Facility provides technical assistance and performance-based incentives to PDBs committed raising their ambition toward Paris Agreement alignment. It also seeks to enhance the banks’ lending capacity and mobilize private sector climate investments. Under the IDB’s Advisory Program, PDBs may benefit from, inter alia, the development and implementation of a sustainability strategy, socio-environmental and climate-related risk management systems and tools like climate tagging of PDB’s portfolios. Performance-based payment mechanisms will be designed and implemented to incentivize the achievement of PDB’s institutional milestones across competencies like sustainable finance strategy, portfolio management, risk management, and metrics and disclosure.

Project data

IKI funding
20,000,000.00 €
Duration
12/2023 till 12/2031
Status
open
Implementing organisation
Inter-American Development Bank (IADB / IDB / BID)
Online
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State of implementation/results

  • The facility is in its early stages.
  • The approval process of the Technical Cooperation RG-T4579 "Regional Technical Advisory Program for Greening Public Development Banks and the Financial Sector" has been initiated and is expected to be approved in Q2 2026. Six letters of interest on the TC have been issued by PDBs of six countries: Bolivia, Colombia, Dominican Republic, El Salvador, Mexico, and Peru. The project team is following up on the issuance of the non-objection letters by the respective finance ministries, in which these authorities declare that the IDB can proceed with the implementation of the technical cooperation.
  • No non-reimbursable performance-based instruments have yet been approved.

Latest Update:
05/2026

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