The Green Climate Fund has broadened its inroads of climate finance into the Latin America and Caribbean region after the signing of a key agreement with the Inter-American Development Bank (IDB).
The signing of Accreditation Master Agreements (AMA) is a prerequisite for all GCF Accredited Entities to implement GCF-approved projects.
IDB sought GCF accreditation, approved in July 2015, to enhance the impact of its climate change projects in the region, with a focus on bolstering vulnerable communities.
For the past decade, the IDB has been a key partner for the Latin America and Caribbean (LAC) region. During the period 2012 to 2016, the IDB financed over USD 10 billion in projects related to climate change.
Accredited Entities are the key links in GCF’s implementation of climate finance as they work in collaboration with National Designated Authorities (NDAs), which are nominated by the recipient countries of climate finance. Accredited Entities also implement the projects GCF approves.
Congratulating IDB on the AMA signing, Acting GCF General Counsel Raul Herrera said GCF is pleased to be partnering with the region’s leading development bank, an early supporter of the Fund. He added the LAC region has great potential in helping to forge global climate action.
“GCF will certainly benefit from IDB’s adaptation and mitigation experiences in this important part of the world,” said Mr Herrera. “It is pleasing to note IDB already has an established track record of supporting low-carbon transport, climate-resilient agriculture, resilient water management and early warning systems.”
Matias Bendersky, IDB´s chief for partnerships and resource mobilization, said GCF is rapidly becoming a cornerstone partner of the IDB for climate action in Latin American and the Caribbean. “We are pleased to have signed this key agreement and look forward to continue working with GCF in new endeavours,” said Mr Bendersky.
Amal-Lee Amin, IDB’s chief of the climate change and sustainability division, added that assisting LAC governments and their private sectors with access to sources of concessional resource is essential for accelerating the implementation of countries’ Nationally Determined Contributions (NDCs).
“We look forward to further strengthening our partnership with GCF in support of LAC countries´ transition to low carbon and climate-resilient economies,” she said.
The AMA signing will help progress the implementation of four projects proposed by IDB that have already received GCF Board approval. These projects focus on a range of measures supporting energy efficiency and sustainable energy, including the use of green bonds.