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Energy Efficiency Green Bonds in Latin America and the Caribbean

TONNES of CO2 Anticipated tonnes of CO2 equivalent avoided


GCF results areas
  • Energy generation and access
Gender benefits Connect female-headed households to the grid. UN Sustainable Development Goal #7 Affordable and clean energy

Location & People

  • Latin America & Caribbean
  • Mexico MX

Investment Data

  • Financing:
    • Public
    • Private
  • Project size:
    • Micro
    • Small
    • Medium
    • Large
  • E&S Risk category:
    • Category A
    • Category B
    • Category C
Total project investment
GCF Financing
  • Instrument Guarantee USD
  • Instrument Grant USD

Project owners

Accredited Entity Executing Entity
  • Inter-American Development Bank (IDB) United States
Energy Efficiency Green Bonds in Latin America and the Caribbean Approved November 2015 Duration 10.0 years
Addressing demand-side energy efficiency in Latin America and the Caribbean through green bonds, by using the concept of aggregation to mobilize institutional funds at scale toward small and medium sized energy service companies.

The Programme addresses demand-side energy efficiency (EE), an area identified by the Intergovernmental Panel on Climate Change as comprising the greatest component of climate finance shortfall for mitigation. EE is one of the most competitive and costefficient ways of responding to increasing energy demand, while reducing greenhouse gas emissions, lowering production costs and improving productivity. Lack of adequate financing is however a major barrier to private sector initiatives in energy efficiency.

In each targeted country, the Programme uses a two-phased approach to bridge that gap. It will, at first, fund energy efficiency projects using loans. Once a sufficient amount of projects are aggregated, the Programme will “bundle” them such that they will be used to underpin the issuance of partly guaranteed green bonds. In its initial phase, the Programme targets four Latin America and Caribbean countries – Colombia, the Dominican Republic, Jamaica and Mexico (as pilot country) – of which two are Small Island Developing States.

The Programme targets minimum emission reduction of 13.2 million tCO2e and 780 million dollars of private investments with potential for further upscaling and replication in other developing countries.
Document title Published date
Funding proposal 15 Oct 2015
Accredited Entity
  • Inter-American Development Bank (IDB) Mr. Matias Bendersky Tel: +1 (202) 623-1723 Mr. David Wilk Tel: +1 (202) 623-1843
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