New Partnership aims to Unlock Funding, Mobilize Swedish Expertise, and Promote Nature-Based Solutions 

DUBAI – During the 2023 United Nations Climate Change Conference (COP28), the Inter-American Development Bank (IDB) and the Swedish International Development Cooperation Agency (Sida) signed a letter of intent to work jointly to finalize a guarantee partnership, which aims to significantly expand the funding capacity of Amazonia Forever, an IDB Group umbrella program aimed at fostering biodiversity and accelerating sustainable development in the Amazon region. The intention of this guarantee when completed is to increase the IDB's lending capacity for the Amazonia Forever program by $450 million. 

The IDB and Sida have been pioneering the use of credit-substitution guarantees for MDBs. In 2021, a $100 million transaction leveraged a 1:3 ratio, unlocking funds for climate projects in Latin America. Building on this initiative, the IDB and Sida are currently collaborating on a second climate focused transaction for the Amazon region in the context of Amazonia Forever. With the anticipated signing of the guarantee agreement, Sweden is officially a new partner of Amazonia Forever, joining Germany, The Netherlands, Switzerland, The United Kingdom, Spain, Israel, AWEX of Belgium, Italy and the Green Climate Fund (GCF).    

Ilan Goldfajn, President of the IDB, said, "This partnership with Sweden enhances our capacity to execute high-quality projects in the Amazon region by adopting innovative approaches to balance sheet optimization. This agreement will allow us to increase the lending capacity of Amazonia Forever our flagship program for the Amazon and underscores our shared commitment to protect one of the planet's most vital ecosystems." 

The synergy between IDB's vision and Sweden’s development priorities and our guarantee offering, coupled with proficiency in nature-based solutions and nature tech, opens a new chapter in climate finance, forest conservation and sustainable development for the Amazon region. "Our joint efforts with the additional funding through the anticipating finalization of the guarantee agreement seeks to foster regional operations and support innovative finance models like Amazon bonds, Debt for Nature Swaps, and bioeconomy loans, which are essential for sustainable development." said Jakob Granit, Director-General of Sida. 

This partnership and the landmark guarantee marks a significant step towards the sustainable development of the Amazon region, blending finance with innovative, tech-forward climate solutions for forest conservation at a critical juncture for the Amazon rainforest. The increased lending capacity resulting from this partnership will support Amazonian countries in financing investments for sustainable land use, including nature-based solutions to enhance forest cover, preserve forests, promote low-carbon agricultural practices, and foster a socio-environmentally inclusive bioeconomy.   

About Amazonia Forever 

Amazonia Forever is a holistic umbrella program that aims to protect biodiversity and accelerate sustainable development on three fronts: expanding funding, boosting the exchange of knowledge, and facilitating regional coordination between the eight Amazonian countries. 

The program is based on five pillars: combating deforestation and strengthening environmental control and security in the context of national governments; the bioeconomy, boosting alternative and sustainable economic activities; people, aiming for adequate access to quality education, health and employment; sustainable cities and infrastructure and connectivity; and sustainable and low-carbon agriculture, livestock and forestry. In addition, it focuses on promoting the inclusion of women, indigenous peoples, Afro-descendants and local communities; climate and forest conservation; and strengthening institutional capacities and the rule of law. 

Latin America and the Caribbean at COP28

The countries of Latin America and the Caribbean are a critical part of the solution to global climate change challenges. In the IDB Pavilion of the Americas, the Bank is hosting more than 30 events with international leaders and experts to showcase initiatives on climate action, from cutting-edge financial instruments to the conservation and sustainable use of natural resources, the Amazon, a just economic transition, and more. Journalists covering COP28 on site are welcome to visit the pavilion, with no registration required. Consult the event schedule here. For journalists covering COP28 remotely, register to access broadcasts of selected events.

Location: IDB Pavilion of the Americas at Blue Zone Pavilion, Opportunity District (OA04G2)