CAF will allocate US $ 25,000 million to promote “green growth”

The Development Bank of Latin America (CAF) will allocate US $ 25,000 million over the next five years to encourage climate action in the region, the entity reported on Monday in a press release that clarifies that the announcement was made during the United Nations Conference on Climate Change in 2021 that culminates tomorrow.

“The planet needs the leadership of Latin America to guarantee its own survival, and the region must take advantage of its position to achieve sustained economic growth that helps it overcome structural gaps in poverty, competitiveness and inclusion, ”said CAF Executive President Sergio Díaz-Granados, quoted in the note.

Díaz-Granados also highlighted that in order to “face the climate change it is essential ”that“ new financial instruments are adopted that guarantee current financing and attract new investment from the private sector ”.

According to the text, CAF will mobilize, in the next five years, “its own financial resources and will align the interests of public and private actors around environmental and social responsibility and the reduction of greenhouse gas emissions”.

The “green financing of the institution will go from 26% in 2020 to 40% in 2026”.

The entity said that one of the first actions related to “CAF’s new green strategy” is the contribution of one million dollars “to reinforce the agreement between Colombia, Costa Rica, Ecuador and Panama to conserve the Marine Corridor of the Eastern Tropical Pacific ”.

In addition, CAF will build “a platform for mobilizing climate and environmental funds” to facilitate the movement of at least US $ 1.5 billion in “concessional financing to the region” between 2021-2026.

At the same time, it will also create a “HUB for the Caribbean in Trinidad and Tobago, which will give special emphasis to environmental issues and prevention of natural disasters in the region.”