A $3 million Israeli grant will establish a new climate-smart agribusiness initiative led by IDB Invest and IDB Lab.
The IDB Group, through its private sector arm, IDB Invest, and its innovation laboratory, IDB Lab, has joined forces with the Government of Israel to empower climate-smart agribusinesses in Latin America and the Caribbean (LAC). Working through its Ministry of Finance and Ministry of Agriculture, Israel is contributing a $3 million grant to help create the new Innovation for Climate-Smart Agribusinesses initiative managed by IDB Invest and IDB Lab.
The initiative aims to help agribusinesses in LAC respond to climate change challenges while fostering the development of resilient, low-carbon business models. The initiative will also help firms export their products, upskill their workforce, and adopt innovative technologies and practices.
Agriculture is critical not just to LAC economies but to global food security. Because of that, IDB Invest, IDB Lab and Israel have joined forces to address key barriers to climate-smart investment by increasing awareness, knowledge, and capacity related to sustainable practices. The initiative will also help identify opportunities in climate-smart agriculture and forestry, test new technologies that can help clients produce sustainably, and increase climate resilience, in addition to providing technical assistance for climate-smart agriculture and forestry.
“We at the IDB believe that empowering firms in Latin America and the Caribbean is critical to reigniting growth, driving social progress, and fostering recovery. Helping agribusinesses operate in more resilient and innovative ways, will create jobs, improve food security, and strengthen economies. We are grateful to our partners in the Government of Israel, which is a model for spurring innovation and private sector development, for their support in this new initiative,” said IDB President Mauricio Claver-Carone.
Oded Forer, Minister of Agriculture and Rural Development: "I am proud to sign this agreement through which Israel will be able to leverage its international leadership in agricultural research and development to help solve the unique challenges facing the sector in Latin America and the Caribbean. This cooperation with the IDB Group will enable, for the first time, the financing of flagship projects and knowledge-sharing activities, aimed at exposing climate-smart and innovative Israeli technologies to practitioners in the region. These activities will serve as a complement to Israel's cooperation with the countries in the region and to our contribution to global efforts to strengthen food security and meet the challenges posed by climate change."
Avigdor Lieberman, Minister of Finance: "This partnership is a testament to Israel's strong commitment to advancing sustainable development in Latin America and the Caribbean. Israel has become a world leader in sustainable and climate-smart agriculture, having developed technologies and methods applicable in resource-scarce contexts. The Fund will allow Israeli expertise and knowhow to be leveraged by IDB clients and partners across the LAC region in order to advance the achievement of the SDGs. With this Fund, Israel is proud to expand upon its already strong collaboration with the IDB Group in the fields of cybersecurity and water technologies. We look forward to continuing to work together with the Group to ensure a sustainable and resilient future for Latin America and the Caribbean."
"Israel’s smart agriculture solutions offer outstanding approaches to growing crops in a changing environment, extending the shelf life of fruits and vegetables, and developing exceptional technologies that aid in tackling world hunger and mitigating the impacts of climate change," added Matan Lev-Ari, Israel’s representative at the IDB’s board. "The IDB-Israel agricultural partnership will present an exciting opportunity to collaborate on one of the most pressing challenges that the region is facing and help strengthen the capacity of the IDB to develop tailor-made solutions for the region's needs in agriculture."
This initiative is a key example of how the IDB’s Vision 2025 agenda can promote economic recovery and inclusive growth by investing in key strategically imports areas including climate change, trade, digitalization, gender and inclusion, and small businesses.
About IDB Invest
IDB Invest, a member of the IDB 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 $13.1 billion in asset management and 385 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.
About IDB Lab
IDB Lab is the innovation laboratory of the IDB Group, the main source of financing and knowledge for development, focused on improving lives in Latin America and the Caribbean (LAC). The purpose of IDB Lab is to drive innovation for inclusion in the region, mobilizing financing, knowledge, and connections to co-create solutions capable of transforming the lives of vulnerable populations due to economic, social, or environmental conditions. Since 1993, IDB Lab has approved more than $2 billion in projects developed in 26 LAC countries, including investments in more than 90 venture capital funds.
About the Government of Israel, Ministry of Finance
The Ministry of Finance is the main economic ministry of the Government of Israel. Under its responsibility is planning and implementing the Government's overall economic policy. The ministry is responsible for planning and setting the targets for Israel's fiscal policy, prepares the draft State Budget and monitors implementation of the approved budget. The ministry also manages the state revenues and collects direct and indirect taxes and promotes non-resident investments. In addition, the ministry conducts economic relations with foreign governments, economic organizations and the international community. The ministry regulates the capital market, savings and insurance.
About the Government of Israel, Ministry of Agriculture
The Ministry of Agriculture and Rural Development is responsible for the planning and development of the urbanization, land conservation, agriculture and veterinary services. The office is divided into districts by geographical regions, and provides information and services on foreign trade, planning, research, urbanization, and investment in agriculture.