CAF will seek to be the green bank in Latin America and the Caribbean after capitalization of US $ 7,000 million

With a capitalization of US $ 7,000 million, the Development Bank of Latin America (CAF) will become an engine of the economic and social reactivation of the region and will promote the energy transformation, in search of the carbon neutrality of its partners, said the Thursday the president of the organization.

CAF’s Board of Directors approved by consensus this week the tenth capital strengthening, the largest in the history of the multilateral credit organization, made up of 19 Latin American and Caribbean countries, as well as Spain, Portugal and 13 private banks in the region.

The patrimonial strengthening will be in charge of the partner countries in accordance with their shareholding and will be done gradually.

“We are going in two directions in the next 10 years: First, the social and economic reactivation of Latin America with an inclusive and equitable accent driven from the infrastructure sector, working very hard with the private sector,” the president said in an interview with Reuters. bank executive, Sergio Díaz-Granados.

“And the other is to turn CAF into the green bank in the region, the bank not only for a sustainable reactivation, but also thinking about the carbon neutrality to which Latin America and the Caribbean have to go,” he explained.

The executive announced that in the next five years US $ 25,000 million will be allocated to help the countries of the region to increase climate resilience, promote the energy transition, reduce greenhouse gas emissions and strengthen the conservation of natural ecosystems. and biodiversity.

The institution’s green financing will go from 24% in 2020 to 40% in 2026.

Carbon neutrality seeks net zero carbon dioxide emissions as part of a global commitment to combat climate change and reduce its effects.

Diaz-Granados assured that the bank has approved a bond placement quota for 37,000 million dollars for the coming years and that the issues will depend on the behavior of the markets.

The executive revealed that green financing will include energy transition and electromobility projects in each country, while work will begin to improve network connections in South America and Latin America and make energy consumption more efficient.

The president of CAF revealed that with the energy transition, the reactivation of tourism and a digital revolution, almost 15 million jobs could be generated in Latin America in the next decade, more than those lost due to the impact of the COVID-pandemic. 19.