The IDB, Denmark, Norway, and Sweden announce guarantee for the Amazon and Central America

Within the framework of the regional programs “Amazonia Forever” and “América en el Centro”, the Inter-American Development Bank (IDB), together with the Impact Fund Denmark, the Norwegian Agency for Development Cooperation (Norad), and the Swedish International Development Cooperation Agency (Sida), signed a letter of intent to establish a new guarantee that will provide the IDB with 800 million dollars in additional lending capacity for clean energy projects.

The agreement will allow the IDB to expand investments by supporting projects that extend access to energy, modernize transmission and distribution networks, promote clean electricity systems, foster sustainable transportation, scale clean cooking solutions, increase energy storage capacity, and strengthen emerging clean technology sectors.

As a reference, the IDB has a strong track record of risk-transfer guarantees, with a 100-million dollars transaction with Swedish Sida in 2021, and a second 250-million dollars deal also with Sida in 2024.