Finland has pledged €5 million to the Inter-American Development Bank’s (IDB) NDC Pipeline Accelerator Multi-Donor Trust Fund (ACL). The contribution makes Finland the newest partner of the ACL, an instrument that enables the IDB and its partners to support the planning, and designing and preparing investments in infrastructure, agriculture, and land-use management, in pursuit of progress on climate change in Latin America and the Caribbean (LAC).
The Fund helps countries align public and private investments with sustainable development objectives and their nationally determined contributions (NDCs) to the Paris Climate Agreement. It is a critical instrument for financing climate action that has been successful in crowding in additional capital. Since its inception, for every dollar invested in the ACL, US$74 of resources have been mobilized and US$1,122 of markets have been unlocked. Climate change is a central priority for the IDB, one highlighted in its institutional strategy and the pillars of Vision 2025: Reinvest in the Americas, the IDB’s blueprint for stimulating recovery and reigniting economic and social development in LAC.
“Our region is particularly vulnerable to the impacts of climate change. That’s why, at the IDB, we have made climate action an urgent priority and a central pillar of our Vision 2025 agenda. We thank Finland for supporting this important work and, through its contribution, making possible the development of a robust pipeline of projects that can move the needle on the Paris Climate Agreement in Latin America and the Caribbean,” remarked President Mauricio Claver-Carone of the IDB.
“The IDB´s track record in promoting investments to mitigate and adapt to climate change in Latin America and the Caribbean is impressive. Finland is pleased to join the Trust Fund to accelerate climate action particularly for the most vulnerable nations in the Caribbean and Central America”, said Minister for Development Cooperation and Foreign Trade Ville Skinnari of Finland.
At COP26, the IDB announced that all new operations will be fully aligned with the Paris Climate Agreement by 2023, with the goal of helping countries in the region address climate change issues and promote sustainable recovery for all. It also set a climate target of providing $24 billion for climate and green finance over the next four years.
Since its launch in 2017, the upstream work and multisectoral approach of the ACL has been well received by clients and partners. To date, the ACL has received $20.08 million from donors including the Austrian Federal Ministry of Finance, the Netherlands’ Ministry of Foreign Trade and Development Cooperation, the Nordic Development Fund, and the Swedish Ministry of Foreign Affairs. The ACL has committed resources for 36 technical cooperation projects for US$14.31 million. Projects range from implementing and updating the Integrated Resource and Resilience Plan (IRRP) for Barbados, a key planning tool to fulfill country’s NDC ambition, to the Green Hydrogen Initiative that will provide strategic support for the decarbonization of the energy sector in the region.
About the Inter-American Development Bank
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 and provides policy advice, technical assistance and training to public and private sector clients throughout the region.
About the NDC Pipeline Accelerator Multi-Donor Trust Fund
Established in 2017, by the Board of Executive Director of the IDB, the ACL aims to support national and subnational entities, public and private, in Latin America and the Caribbean (LAC) to plan and design investments in infrastructure, agriculture, and land-use management that are aligned with the countries’ NDCs and other national climate and sustainable development objectives. The ACL provides grant financing to cover the added costs of embedding climate and sustainability considerations in upstream program and project preparation. Fund resources seek to enable IDB Group’s projects and counterparts at the country level to develop plans for low carbon growth, climate resilience, and sustainability early in the project cycle.
About the Government of Finland
Finland joined the IDB in 1977. Since then, Finland has financed several IDB initiatives, and has been a strong supporter of efforts to reduce poverty and inequality, and has contributed generously to countries hit by natural disasters.
Operations Lead Specialist