Green FinanceGreen finance broadly refers to financial investments flowing into sustainable development projects and initiatives, environmental products, and policies that encourage the development of a more sustainable economy and a range of another environmental objective. Green finance includes climate finance but is not limited to it. Read More
Green finance comprises:
- components of the financial system that deal specifically with green investments, including their specific legal, economic and institutional framework conditions;
- the financing of public and private green investments in different areas, including:
- provision of environmental goods and services,
- prevention, minimization and compensation of damages to the environment and to the climate
- the financing of public policies that encourage the implementation of environmental and environmental-damage mitigation or adaptation projects and initiatives.
Green finance Initiative (GFI) strives to increasing the level of financial flows from financial institutions, investment funds, insurance and also micro credit, available to the public, private and not-for-profit sectors to implement sustainable development goals.
The GFI aims to support National Development Banks (NDBs), Agencies and Local Financial Institutions in the promotion of financing strategies geared to mobilize private sector green investments.
Scope of Activities
Tailored support for National Development Banks to design and promote green financial instruments; Structuring a green financing strategy, including strengthening of its institutional capacity for NDBs.
Innovative Financial Solutions
PPPs, interconnected zones, renewable energy, energy efficiency.
Financial Innovation Labs (LABs) to promote dialogue with regulators, capital markets and financial sector stakeholders.
Where it is implemented
The general objective of the Project is to promote efficiency in the production and use of energy in Argentina. It is expected to increase SMEs investments in renewable energy ("ER") and energy efficiency ("EE"), through access to medium and long-term financing; and therefore, contribute to the reduction of greenhouse gas emissions ("GEl").
In the long term, the cumulative results of the effective operation of the biomass, biogas, and energy efficiency subprojects funded by our partners are expected to lead to more efficient patterns of energy production and use in each specific market.Read More
This proposal intends to use GCF resources to offer financial mechanisms designed to meet the specific needs of RE and EE projects. We offer standard financing tools, such as loans that can be combined with non-financial instruments to reduce perceived and real risk levels for developers, thereby helping to remove financial barriers to investment.
The credit lines will encourage the leverage of other sources of debt and capital mainly through: (i) a minimum capital requirement in financed projects (final beneficiaries of the loan); (ii) possible limits for individual credit.
Sector-specific uncertainties (such as the costs of certain technologies, the new regulatory framework, the existence or volatility of the resource, etc.) critically influence investment decisions in renewable energy and energy efficiency. In this context, the demonstrative effect of public intervention becomes crucial to promote private financing and create a cluster of investments and technology for energy efficiency and renewable energy backed by a carefully designed incentive structure; such as financial incentives, technology validation, risk-sharing mechanisms and international standards for ESG.Read More
It will be an additional challenge for 2020 to review the new financing needs and limitations for SMEs in the new context COVID-19
Currently 4 projects are underway for the construction of Biogas plants and the production of thermal and electric energy in different provinces of Argentina. The projected installed capacity is 6.8 MW and the reduction in emissions reaches 16,903 tCO2. These projects have leveraged USD 10.1 millions of private financing. This allows our clients to test the business model, while spreading the highest standards in terms of social and environmental safeguards (ESG).Read More
We have actively promoted the experience of the BICE sales team in energy and energy efficiency. On June 13, 2019, a training session on energy efficiency was held for the BICE commercial team. A total of 60 commercial agents from all regions of the country participated, 25% were women. The goal was to further promote skills related to identifying potential subprojects and showcase existing successful business models in other countries.
In the long term, the cumulative results of the effective operation of the biomass, biogas, and energy efficiency subprojects funded by our partners are expected to lead to more efficient patterns of energy production and use in each specific market.
The Government of Chile is promoting the development of strategies at the national scale to promote investments in Public-Private Partnerships and green private investments, through dialogue tables between the public and the private sector (the “Green Agreement”).
CORFO will be developing and implementing innovative financial instruments and technical assistance to be deployed through Chile’s first-tier, local, financial institutions to promote private investments in low-carbon projects including renewable energy, energy efficiency and sustainable transport measures.
- AR-T1213 - Support for Promoting Risk Mitigation Instruments and Finance for Renewable Energy and Energy Efficiency Investments for SMEs in Argentina with BICE
- CO-L1124 - CTF Energy Efficiency Financing Program for the Service Sector
- CO-T1153 - Development of the potential for Carbon Finance in BANCOLDEX
- CO-T1328 - Support to Structure an Energy Efficiency Financing Strategy Services Sector
- CO-T1332 - Mitigation of GHG Emissions through Energy Efficient Investments Hotels/Clinics
- CO-T1423 - Financing Mechanisms for Private Investments in Energy Efficient (EE) Public Lig
- Design and promotion of a pre-investment facility to scale up private investments in public-private partnerships to promote energy efficiency and renewable energy in municipal infrastructure (Mexico - BANOBRAS)
- Design of a specific ESMS to be applied by a guarantee fund for SMEs (Barbados - CENTRAL BANK OF BARBADOS)
- Development of a Financial Strategy for Renewable Energy and Energy Efficiency (Colombia - FINAGRO)
- Development of a financing strategy utilizing the Energy Savings Insurance to scale-up energy efficiency investments in the tourism sector and the promotion of a pre-investment facility to scale up private green investments in public private partnerships (Mexico - BANCOMEXT)
- Development of a Green Strategy (Brazil - BANCO DE DESENVOLVIMENTO DE MINAS GERAIS)
- Development of an ESMS and Green Line for Bancoldex (Colombia - BANCOLDEX)
- Development of financial instruments for energy efficiency and distributed renewable energy in small and medium-sized enterprises (Brazil - BNDES)
- Development of financial instruments for energy efficiency and distributed renewable energy in small and medium-sized enterprises (Brazil - FOMENTO PARANA)
- Development of initiatives that promote green financing, especially by promoting investments with Public-Private Partnerships in energy efficiency projects (Brazil - DESENVOLVE SP)
- Development of the Energy Savings Insurance (ESI) Program (Brazil - BANDES)
- Development of the Energy Savings Insurance (ESI) Program (Brazil - GOIÁS FOMENTO)
- Development of the Energy Savings Insurance (ESI) Program (Peru - COFIDE)
- Development of the Energy Savings Insurance (ESI) Program and Expansion of Technologies (Colombia-BANCOLDEX)
- Development of the Energy Savings Insurance (ESI) Program in SMEs in the agricultural sector (Mexico - FIRA)
- Development of the Energy Savings Insurance Program (Brazil- BRDE)
- Development of the Energy Savings Insurance Program (El Salvador - BANDESAL)
- Development of the Energy Savings Insurance Program (Mexico-BANCOMEXT)
- Development of the Energy Savings Insurance Program and additional financial instruments for energy efficiency and distributed renewable energy in SMEs (Paraguay - AFD)
- ES-L1132 - Financing of Energy Efficiency in Small and Medium Enterprises
- Gap analysis of the E&S regulations applicable to Fonplata vs. the IDB safeguards and the IFC performance standards (Argentina - FONPLATA)
- ME-T1265 - Support to FIRA for the Implementation of an Energy Efficiency Financing Strategy
- ME-T1266 - Support to FIRA for the Implementation of an Energy Efficiency Financing Strategy
- Promotion of building energy efficiency in housing and cities (Mexico - SHF)
- RG-T2338 - Supporting Institutional Capacity C and D Groups Countries promote Energy Effice (Paraguay)
- RG-T3045 - Building Green Financial Instruments and Systems in LAC from the Experience of China
- RG-X1244 - Support to Banobras with an Environmental and Social Risk Management System (Mexico - Banobras)
- Support BANDESAL in adjusting its ESRM System to its second-tier activities (El Salvador - BANDESAL)
- Support the Development Agencies in Brazil in the implementation of the new national regulation on E&S issues (Brazil - ABDE)
- Support the emission of green bonds (Brazil – BDMG)
- Support the emission of green bonds (Colombia - Bancoldex)
- Support the structuring of a green financing strategy (Brazil - BANCO DO BRASIL)
- Support to AFEAM with an Environmental and Social Risk Management System (Brazil - AFEAM)
- Support to Bancoldex for the integration of Renewable Energy projects in its Environmental and Social Risk Management System (Colombia - BANCOLDEX)
- Support to Finagro with an Environmental & Social Risks Management System (Colombia - FINAGRO)
- Support to FINDETER with Environmental and Social Risks Evaluation and Management (Colombia - FINDETER)
- Support to FIRA with an Environmental and Social Risk Management System (Mexico - FIRA)
- Support to FND with an Environmental and Social Risk Management System (Mexico - FND)
- Support to the Government of Brazil in the development of a framework of a Sustainability Laboratory (Brazil – ABDE & CVM)
- Supporting the positioning as a Green Bank (Mexico - FIRA)
Why Green Finance?GF scales up public and private investments that provide environmental benefits, through new policies, financial institutions and financial instruments, such as, inter alia, green banks, green bonds, carbon market instruments, innovative financial technologies, labelling, guarantees for PPPs.
Investment in the green economy needs to take place on a larger scale over coming decades in order to achieve the Sustainable Development Goals and the global objectives of the Paris Agreement.
Green Finance allows overcoming barriers to green investment such as:
3 years since the establishment of the LAB
Banco do Brasil is among the 10 most sustainable companies in the world
The bank was rated 1st in the ranking of financial institutions. Banco do Brasil (BB) was considered the most sustainable financial institution in the world, and ranks among the ten most sustainable corporations in the “Global 100 Most Sustainable Corporations in the World” index, produced annually by the Canadian publication Corporate Knights. The announcement was made this Tuesday (22) during the World Economic Forum, in Davos (Switzerland).
First Certified Agricultural Green Bond in Oaxaca
Partners on the GroundWho is supporting GFI
This Initiative is being promoted by the IDB with support from the International Climate Initiative (IKI) of the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB).
Furthermore, the IDB has partnered with key determined ‘green’ stakeholders and National Development Banks to design and promote green financial instruments in the Latin America and the Caribbean region.
- Stay updated on the latest trends of Green Finance