In the presence of the European Commission, the coalition of development finance institutions and multilateral organizations of the Global Green Bond Initiative (the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), Italy’s Cassa Depositi e Prestiti, the Spanish Agency for International Development Cooperation (AECID), Germany’s KfW development bank, PROPARCO of the AFD Group, acting as a consortium of European development finance institutions and the Green Climate Fund (GCF)), have today launched a strategic partnership with the Inter-American Development Bank (IDB) and IDB Invest to cooperate on technical assistance to promote green bond markets in Latin America and the Caribbean. The declaration was signed in Cartagena, Colombia, at the Finance in Common Summit, held from September 4th to 6th.
This new strategic partnership is intended to be part of the technical assistance programme of the Global Green Bond Initiative (GGBI) announced by Ursula von der Leyen, President of the European Commission, in June 2023.
The Global Green Bond Initiative will facilitate the flow of private capital from institutional investors into climate and environmental projects in EU partner countries and thereby increase their access to capital. It will do so notably by providing technical assistance to green bond issuers in emerging markets and developing economies (EMDEs) and by crowding in private investors through a dedicated de-risked fund, which will act as an anchor investor in EMDE’s green bonds. The fund’s anticipated impact could spur green investments totalling up to EUR 15-20 billion.
To further strengthen the technical assistance arm of the Global Green Bond Initiative, the GGBI coalition seeks to collaborate with strategic partners including regional and local development banks across the globe, in particular, to support the origination of green bonds, the development and identification of pipelines of green projects and the development of credible and coherent green bond frameworks.
This new strategic partnership between the GGBI coalition, the Inter-American Development Bank and the IDB Invest is a first step in that direction.
Green bonds are debt sold to investors with a commitment to use all the proceeds for green investments. First launched in 2007, they have become globally recognized as a key tool in mobilizing capital from private investors for projects with environmental impact, thus contributing to finance sustainable development. The GGBI coalition sees a potential in green bonds to also develop and strengthen local capital markets in development countries.
Full details about the involvement of the participating organisations in specific deals and activities will be worked out in the framework of this cooperation.
The full text of the joint declaration signed today is attached.
AECID, the Spanish Agency for International Development Cooperation, is the main management body of the Spanish Cooperation, aimed at poverty reduction and sustainable human development. Its strategic roadmap, in line with Agenda 2030, is the 5th Master Plan for Spanish Cooperation, based on a human rights approach; it pays special attention to three cross-cutting issues: gender, environmental quality and respect for cultural diversity. AECID’s toolbox includes technical assistance and financial cooperation, managed through FONPRODE (Fondo para la Promoción del Desarrollo). Launched in 2011, it includes grants and loans, and implements both debt and equity operations.
About Cassa Depositi e Prestiti
Cassa Depositi e Prestiti (CDP) is the National Promotional Institute, which has been supporting the Italian economy since 1850. The main goal of CDP is to accelerate the industrial and infrastructural development of Italy to boost its economic and social growth. CDP focuses its activities on sustainable development at local level, supporting the innovation and growth of Italian enterprises, also in the international arena. It partners local authorities, in a financing and advisory capacity, to create infrastructures and improve services of public value. CDP also participates actively in international cooperation initiatives to realize projects in developing countries and emerging markets. www.cdp.it
About the GCF
The Green Climate Fund (GCF) is the world’s largest dedicated climate fund. GCF’s mandate is to foster a paradigm shift towards low emission, climate-resilient development pathways in developing countries. GCF has a portfolio of USD 12.8 billion (USD 48.3 billion including co-financing) delivering transformative climate action in more than 120 countries. It also has a readiness support programme that builds capacity and helps countries develop long-term plans to fight climate change. GCF is an operating entity of the financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC) and serves the 2015 Paris Agreement, supporting the goal of keeping average global temperature rise well below 2°C.
About the European Bank for Reconstruction and Development
The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 36 economies across three continents. The Bank is owned by 71 countries as well as the EU and the EIB. EBRD investments are aimed at making the economies in its regions competitive, inclusive, well-governed, green, resilient and integrated. Follow us on the web, Facebook, LinkedIn, Instagram, Twitter and YouTube.
About the European Investment Bank
The European Investment Bank (EIB) is the European Union’s long-term financing institution, owned by its member states. We finance sound investments that contribute to EU policy goals. We support projects in infrastructure, innovation, climate and environment, and small and medium-sized enterprises. EIB Global carries out our operations outside the EU. As a key partner in the EU’s Global Gateway, we aim to support at least €100 billion of investment by the end of 2027, one third of the strategy’s target. With offices across the world, EIB Global is close to local people, firms and institutions, and fosters strong Team Europe partnerships with development finance institutions.
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social, and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research projects and provides policy advice, technical assistance, and training to public- and private-sector clients throughout the region.
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $15.3 billion in asset management and 375 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
KfW Bankengruppe, founded in 1948, is the German promotional bank and one of the world’s leading promotional banks. It is 80% owned by the Federal Government and 20% by the federal states.
The business sector KfW Development Bank carries out Financial Cooperation (FC) projects with developing countries and emerging economies on behalf of the German Federal Government, especially of the Federal Ministry for Economic Cooperation and Development (BMZ). KfW Development Bank employs approximately 1,200 people at the head office in Frankfurt am Main and well 400 specialists at more than 60 international locations, who cooperate with partners all over the world. Their goal is to combat poverty, secure peace, protect the environment and the climate as well as ensure fair globalisation. KfW Development Bank is a competent and strategic adviser for current development policy issues.