BELÉM, Brazil — The Inter-American Development Bank (IDB) and the Central Bank of Brazil have signed a first-of-its-kind agreement to enable up to $3.4 billion in foreign-exchange hedging to help mobilize private investment for sustainable development, starting with Brazil’s Eco Invest Program.
Structured under internationally recognized International Swaps and Derivatives Association (ISDA) standards, the agreement creates a dedicated FX Hedging Conduit that allows the IDB to supply long-dated derivatives through the Central Bank, which will then be channeled to Eco Invest beneficiaries via local banks. By reducing currency risk, the mechanism unlocks long-term private capital for investments in areas such as renewable energy, the bioeconomy, resilient infrastructure, and sustainable land use.
The Central Bank of Brazil plays a key role by connecting the IDB to domestic financial institutions – enabling these institutions to transfer international hedging instruments to the local private-sector investors in sustainable development at lower cost.
Importantly, this structure reduces currency risk for investors while preserving the balance sheets of both the Central Bank and the IDB from FX exposure.
The agreement also sets an example for global adoption. FX EDGE, led by the IDB in partnership with Brazil and the United Kingdom, aims to expand to other countries in Latin America and the Caribbean by 2030, drawing on the Eco Invest experience.
“This agreement is a crucial element of the Eco Invest architecture, an innovation that Brazil brings to the world, in its scalable and replicable form,” said IDB Group President Ilan Goldfajn. “It shows how central banks and multilateral development banks can work together to mitigate important market barriers and foster private investments for resilience and sustainable development.”
The FX Hedging Conduit also completes the original architecture of Eco Invest: blended financing to catalyze private capital, liquidity tools, a, project preparation facility, and now, FX hedging to manage risk, all using a transparent, competitive platform to allocate resources efficiently.
Since its launch, Eco Invest – led by the government of Brazil with support from the IDB and the United Kingdom – has mobilized over 75 billion reais ($13.2 billion), including 46 billion reais ($8 billion) from foreign investors. The program now spans four public auctions, including the latest – announced today at COP30 in Belém – which focuses on scaling the bioeconomy and ecotourism infrastructure in the Amazon region.
Aligned with Brazil’s Ecological Transformation Plan, Eco Invest channels investment into key sectors such as the bioeconomy, renewable energy, resilient infrastructure, and sustainable forest management.
This MDB-central bank collaboration shows how multilateral institutions can help remove barriers, manage risk smartly to foster investment, and help countries mobilize private capital in support of their national priorities.
The IDB Group at COP30
The IDB Group is holding more than 80 events at COP30 to present solutions aimed at closing financing gaps for resilient development through partnerships, innovation, and a focus on measurable impact in Latin America and the Caribbean. Journalists present are invited to visit our spaces, with no registration required: the IDB Group Pavilion in the Blue Zone, the IDB Group Pavilion in the Green Zone, and the AMAZÔNIA SEMPRE Station at the Goeldi Museum. Follow our COP30 page for all news and event schedules.
The IDB Group is acting as a bridge – connecting governments and investors, the public and private sectors, people and communities – to mobilize at least $6 billion in announcements that help close financing gaps for resilient development and support national priorities.
About the IDB
The Inter-American Development Bank (IDB), a member of the IDB Group, is devoted to improving lives across Latin America and the Caribbean. Founded in 1959, the Bank works with the region’s public sector to design and enable impactful, innovative solutions for sustainable and inclusive development. Leveraging financing, technical expertise, and knowledge, it promotes growth and well-being in 26 countries. Visit our website: https://www.iadb.org/en.
Romina Nicaretta
De Araujo Aragaki,Bruno Katsumi
