LABsInnovation is a powerful tool that can help drive transformations in the region and promote investment in different sectors, and provide opportunities for progress to populations in vulnerable situations in economic, social and environmental terms. The "LAB" is the innovation laboratory dialogue between financial and capital markets to structure and identify ways to implement innovative green and sustainable financial instruments and to promote sustainable best practices for capital markets in the region, in collaboration with development banks and state development agencies, among other actors.
Scope of Activities
Exchange of experiences on financial instruments for different sectors, including transport, energy and agriculture.
Promotion of instruments and the regulatory framework for the development of the local market for green and sustainable bonds and assistance to investors and issuers.
Support to public and private banks in developing best practices for green banking, including institutional strategies, and climate risk management..
Promotes the creation of alternative financial instruments to finance investments with social impact, deepening financial solutions for local projects.
Where it is implemented
Development of innovative financial solutions to leverage private investment in projects that may have social and/or environmental additionality.
Roadmap activities identification and objectives definition to integrate climate change risks into financial practices and regulation.
Identifying financial solutions to expand private investment in green and sustainable businesses.
Why LABs?LABs allow for strategic positioning to work with the private sector and leverage influence on linkages with governments, corporations and civil society to maximize the impact of planned projects and investments.
As a platform that catalyzes innovation for inclusion in Latin America and the Caribbean, IDB Lab supports ventures and projects with the potential to generate transformational impact on populations that are vulnerable due to economic, social, gender and/or environmental conditions.
LABs connect capital resources, stakeholders and knowledge in Latin America and the Caribbean, and between the region and different parts of the world.
Innovation allows to overcome barriers that prevent green investment such as:
As a result of the first year of the Brazilian LAB, three products were designed and presented, i) Energy Saving Insurance (ESI), ii) risk analysis of solar photovoltaic projects and iii) first loss fund. Read More
Green Finance Public-Private Roundtable, to outline a long-term agenda for dialogue and joint work between government, regulators and financial market institutions, to incorporate climate change risks and opportunities into their business strategies. Read More
Partners on the GroundThe Inter-American Development Bank has partnered with major "green" players to catalyze new investments in the Latin American and Caribbean region.
This initiative is promoted by the IDB with the support of the International Climate Initiative (IKI) Federal Ministry of the Environment, Nature Conservation and Nuclear Safety (BMUB).
Additionally, the IDB has partnered with key "green" players and national development banks (NDBs) to design and promote green financial instruments in the Latin American and Caribbean region.
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