- KfW Development Bank, on behalf of the German Federal Ministry for Economic Cooperation and Development, teams up with IDB to form the Green Bond Partnership for green bond market development in Latin America and the Caribbean.
- IDB and IDB Invest join the Global Green Bond Initiative led by the European Commission, the European Investment Bank, and European development finance institutions to expand the projects supported by the initiative in Latin America and the Caribbean.
- Four international organizations partner with IDB to promote greater transparency in green bond markets globally.
CARTAGENA, Colombia – The Inter-American Development Bank (IDB) has announced three new partnerships with international development organizations to support the development of green bond markets in Latin America and the Caribbean and other emerging markets. The partnerships were announced during the Finance in Common Summit, which is taking place on September 4-6 in Cartagena, Colombia.
The partnerships are part of efforts by the IDB and other international and regional development institutions to increase their level of cooperation to improve synergies and mobilize more private capital to help developing countries meet their commitments under the Paris Agreement and advance their sustainable development goals.
KfW Development Bank Teams Up with IDB to Boost Green Bond Market Development
KfW Development Bank on behalf of the German Federal Ministry for Economic Cooperation and Development have signed a letter of intent with the IDB to create the Green Bond Partnership (GBP). The Partnership will provide EUR 2 million for the IDB to finance measures to develop and promote standards, best practices, and financial instruments to enhance the development of green bond markets in Latin America and the Caribbean.
The two institutions are in the final stages of negotiations to finalize the agreement, which builds on a long-standing collaboration between the IDB and Germany, to develop green capital markets in the region. The Partnership will also strengthen the IDB’s Green Bond Transparency Platform (GBTP) and support capacity building, standardization, and digitization of green bond information, regulatory support for taxonomies, as well as create a knowledge academy to facilitate well-informed investment decisions in this type of asset.
IDB and IDB Invest Join Global Green Bond Initiative
During the event, the IDB and IDB Invest joined a group of six other development organizations to support green bond markets in emerging markets and developing economies, as part of the Global Green Bond Initiative (GGBI) led by the European Commission.
As one of the key partners of the initiative for Latin America and the Caribbean, IDB and IDB Invest are expected to channel resources from GGBI to support the origination of green bonds, provide incentives to support market development and promote the adoption of verification processes and compliance with international and harmonized reporting standards.
Moreover, the initiative is expected to support the adoption of the IDB’s Green Bond Transparency Platform, which currently operates in Latin America and the Caribbean, as a key platform to report on green bond results in other regions.
Besides the IDB and IDB Invest, the cooperation brings together the European Investment Bank, the European Bank for Reconstruction and Development, the Italian Cassa Depositi e Prestiti, the Spanish agency for International Development Cooperation (AECID), the German KfW Development Bank, the French PROPARCO of the AFD Group, acting as Team Europe, as well as the Green Climate Fund.
Globalization of the Green Bond Transparency Platform (GBTP)
To further support the expansion of the Green Bond Transparency Platform (GBTP) as a key reporting tool for green bonds globally, four international development organizations endorsed during the event a joint declaration expressing their support to promote the adoption of the platform by other countries outside the Latin American and the Caribbean region.
The endorsement is part of a joint declaration where the IDB, the European Investment Bank (EIB), the Agence Française de Développement (AFD), KfW Development Bank, and the Spanish Agency for International Development Cooperation (AECID) pledge to work together to increase transparency in green bond markets.
About the Green Bond Transparency Platform
The IDB and IDB Invest launched the Green Bond Transparency Platform (GBTP) in April 2021, and since then the GBTP became a key reporting tool for issuers of green, sustainable, and sustainability-linked bonds. The award-winning platform currently covers 80% of the Latin American and the Caribbean market volume (USD 42 billion), having added 235 green and sustainable bond issuances voluntarily to the platform from 13 jurisdictions in the region.
More than 400 market actors have been trained to use the platform, which supports secure, consistent, transparent, and credible reporting of impacts generated by all green and sustainable bonds issued in Latin America and the Caribbean.
The open and free-to-use platform allows investors and the public to track the use of proceeds and impact metrics at the project level, aligning with existing and evolving standards and methodologies. The unique solution allows issuers to build a track record, increasing transparency and generating confidence in the green bond market while promoting the harmonization and standardization of green bond reporting.
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 IDB Invest
IDB Invest, a member of the Inter-American Development Bank 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 $16.3 billion in assets under management and 394 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.
IDB’s Vice-President of Sector and Knowledge Ana María Ibáñez and KfW’s member of the Management Committee Christian Krämer during the signing of the letter of intent to create the Green Bond Partnership (GBP).