Luis Alejandro Mejía is Lead Investment Officer at IDB Invest, where he leads the Advisory Services operations in the Central American Region and supports IDB Invest's business segments in the origination of high-impact businesses. A Guatemalan, Luis Alejandro is an Agronomist specialized in Pressurized Irrigation and has an MBA with a focus on sustainable development. He has led and / or originated several emblematic projects of the IDB Group in the region; one of them received the first prize awarded by the IDB Group in Diversity, “Diversity Award 2018." Before joining the IDB Group, Luis Alejandro initiated and innovated from the private sector the first transaction of carbon credits in forestry activities in the world in voluntary markets, and developed green financing lines for sustainable energy, sustainable transport and sustainable agroforestry industry. In 2012, he received the beyondBanking award in the planetBanking category, during that year's IDB Board of Governors, in recognition of these innovations.
Green finance in the private sector was predominantly linked to corporate responsibility. It’s now the time to integrate climate action into the core business of financial institutions.
The abundance of renewable resources places the regional industry well below many of its rivals in terms of greenhouse gas emissions per unit of electricity generated — a unique advantage that can help the region move rapidly towards the net-zero emission target.
Addressing climate change in the region calls for financial institutions to step up their role in channeling capital towards green investments, including the green transition. It also calls for boosting impact measurement and reporting capacity to avoid green washing.
It’s important to invest in the construction of buildings that reduce greenhouse gas emissions, but it is equally, or more, important to create a new financial framework and a new mentality that helps investors direct their funds in this regard.
Banco Promerica Costa Rica's first sustainable bond issue in Central America paves the way for the region's financial sector to align itself with the latest trends in international finance and refine the environmental and social impact assessment of its operations.
Investing and financing are the first steps on the road to sustainability. In sustainable development, knowledge and experience are needed too.