news agency
IDB offers financing to cities to combat the climate crisis

IDB offers financing to cities to combat the climate crisis

The Inter-American Development Bank (IDB) offers technical and financial support to the cities of the American continent so that they develop projects to combat the climate crisis, explained Tatiana Gallego, head of the Housing and Urban Development Division of the institution.

“The message we would like to give is that cities are at the forefront of change and, specifically, at the forefront of climate action”Gallego said in an interview with EFE on the eve of the first Summit of Cities of the Americas, to be held on April 27 and 28 in Denver (Colorado, USA).

The Division Chief said that the IDB is “available to support technical growth, the development of new instruments for cities and to manage a collaboration between the public and private sectors”.

“Denver is an opportunity not only to exchange experiences and learn, but also to take action,” stressed.

According to IDB calculations, 70% of the investments needed to curb climate change in Latin America and the Caribbean do not correspond to national or regional governments, but to cities.

However, the municipalities in the region have insufficient income. They are excessively dependent on transfers from the central government, which represent 56% of their income, and only hold between 3% and 4% of the tax collection.

In addition, the COVID-19 pandemic has caused a 5% increase in spending in Latin American and Caribbean cities, in contrast to a 10% decrease in revenue.

The head of the Housing and Urban Development Division believes that many national infrastructure projects in the region “They don’t really give space to cities.”

For this reason, at the Summit of Cities of the Americas in Denver, sponsored by the US Department of State, the IDB has organized a plenary meeting with dozens of mayors on financing.

“We believe that it is essential to provide and facilitate access to financing at the subnational level, and it must be affordable financing,” Gallego explained.

For those cities that want to develop sustainable development projects and that do not have the capacity to issue debt, the IDB proposes resorting to municipal development funds.

These funds are articulated through financial intermediaries such as banks or trusts and grant loans and donations for the development of projects with the participation of the public and private sectors.

To be eligible, those projects must be “adequate for size and capabilities” of the city requesting the financing, Gallego said.

The manager stressed that “projects associated with public transport are very important” andIn this sense, he affirmed that the IDB is involved in the construction of the Bogotá metro and in the bus system of Curitiba (Brazil).

He also highlighted the need to promote projects to improve the energy efficiency of buildings, the construction of rain gardens and green walls, as well as slowing the rise in temperatures in urban environments by increasing shaded areas.

And added that “Investment at the city level is very important” to clean up water, improve drainage and avoid the impact of droughts.

“One of the areas that we try to promote is collaborative work between the public and private sectors, promoting urban development and economic opportunities, with social mix and healthy environmental zones,” Gallego said.

The Summit of the Cities of the Americas is a new regional forum born from the Summit of the Americas in Los Angeles in 2022, whose first edition will be held in Denver with the participation of mayors from municipalities such as Mexico City, Bogotá, Miami, Rio de Janeiro and Santo Domingo.

Source: EFE

Source: Gestion

You may also like

Hot News

TRENDING NEWS

Subscribe

follow us