IDB Lab, the innovation laboratory of the Inter-American Development Bank (IDB) Group, introduced its Green Entrepreneurial Engine approach, an ambitious effort to address climate change and environmental sustainability while accelerating technological climate innovation in Latin America and the Caribbean. The approach seeks to create value through natural capital and nature-based solutions in the region. 

IDB Las has received a financial commitment of $46 million from 26 allies, including multi-donor funds, multilateral organizations, public cooperation agencies, corporations, private foundations and philanthropy, among others. This comprehensive IDB Lab approach will create early-stage investment opportunities, reduce the risk of investment in new climate and nature-oriented markets and support the consolidation of local and regional green innovation ecosystems that amplify and accelerate impact. The committed sum will allow financing for emerging companies and biobusinesses in early stages through non-refundable contributions and investments in seed capital, among other methods.

The Green Entrepreneurial Engine addresses climate change and environmental sustainability with defined lines of action to tackle significant challenges such as mitigation, adaptation, sustainable use of water and marine resources, transition to a circular economy, prevention and control of pollution, and protecting and restoring biodiversity and ecosystems. To do this, it will undertake the enabling factors of the green entrepreneurship ecosystem incorporating innovation, diversity and sustainability. It will also undertake specific programs to consolidate biobusinesses and the development of startups in climate matters, fully in alignment with the Paris Agreement and the post-2020 Global Biodiversity Framework. This approach reinforces IDB Lab's commitment to gender and diversity goals, promoting the effective inclusion of entrepreneurial women, Afro-descendants, and indigenous communities. 

"The Green Entrepreneurial Engine approach that we adopt at IDB Lab represents a coordinated effort to mobilize resources, knowledge and connections to combat climate change and prevent biodiversity loss in our region. This approach enables us to move towards both a green and digital transition for Latin America and the Caribbean," said Irene Arias, CEO of IDB Lab. 

The Green Entrepreneurial Engine project builds upon more than a decade of experience from IDB Lab in facilitating and leading environmental projects that have positively impacted the planet and people's lives. Some examples include Ecomicro, ProAdapt, and Latitud R, three pioneer initiatives that have successfully advanced the natural capital agenda in the region. Additionally, this approach joins other efforts of the IDB Group, such as the recently approved Fund for Nature, the Natural Capital Laboratory, and the Amazonia Forever initiative, which seeks to open new doors to investment in areas such as climate action, digitalization, and biodiversity conservation, which are crucial for Latin America and the Caribbean's development.