PUNTA CANA, Dominican Republic — The IDB and the Swedish International Development Cooperation Agency (Sida) formalized an exemplary financing guarantee partnership that increases the IDB’s lending capacity for the Amazonia Forever program by $469 million. The partnership was formalized during the 2024 Annual Meetings of the Boards of Governors of the Inter-American Development Bank (IDB) and IDB Invest.
The initial steps of this partnership were taken last year during the 2023 United Nations Climate Change Conference (COP28), where the parties signed a letter of intent to collaborate towards securing the guarantee signed today.
Thanks to Sida's guarantees, the IDB is able to allocate additional resources to invest in forest conservation and sustainable forest management, sustainable and resilient landscapes and bioeconomy in Amazonian countries.
The IDB and Sida have been pioneers in using credit-substitution guarantees, one of the instruments used by IDB for Balance sheet optimization. In 2021, a $100 million transaction, unlocked funds for new projects focusing on poverty alleviation, climate change, and gender equality in Bolivia, Colombia, and Guatemala. Building on this initiative, the IDB and Sida signed this second $250 million guarantee, that will unlock $469 million of additional lending for the Amazon region under the Amazonia Forever framework.
With this transaction, Sweden is the latest country to become a partner of IDB’s Amazonia Forever program, joining Germany, The Netherlands, Switzerland, The United Kingdom, Spain, Israel, AWEX of Belgium, Italy, and the Green Climate Fund (GCF).
About Amazonia Forever
Amazonia Forever is a holistic umbrella program that aims at protecting biodiversity and accelerating sustainable development in three lines of action: expanding funding, boosting knowledge exchange, and facilitating regional coordination among the eight Amazonian countries.
The program is based on five pillars: (i) Combating deforestation and strengthening environmental control and security in the context of national governments; (ii) Bioeconomy and creative economy, promoting alternative and sustainable economic activities; (iii) People, aiming at adequate access to quality education, healthcare, and employment; (iv) Sustainable cities and infrastructure and connectivity; and (v) Sustainable, low-carbon agriculture, livestock and forestry. In addition, the program focuses on promoting the inclusion of women, indigenous peoples, people of African descent and local communities; climate and forest conservation; and strengthening institutional capacities and the rule of law.
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 and provides policy advice, technical assistance and training to public- and private-sector clients throughout the region. Take our virtual tour.
About Sida
Sida is Sweden's Government Agency for Development Cooperation. The Agency strives to reduce poverty and oppression around the world. In cooperation with organisations, government agencies and the private sector Sida invests in sustainable development for all people. Sida can issue guarantees to encourage banks and other investors to invest in development projects. This allows businesses and entrepreneurs in developing countries to access capital more easily, and facilitate investments that help reduce poverty.
Garcia,Geraldine
Borges De Padua Goulart Janaina
