IDB, IDB Invest and Asobancaria Sign an Agreement to Promote the Circular Economy in Colombian Financial Entities

IDB, IDB Invest and Asobancaria have signed an agreement to promote sustainable business initiatives in the circular economy by strengthening internal capabilities and offering added value, which will be reflected in an action plan to finance circular economy initiatives for Colombian financial entities, members of the Asobancaria Green Protocol.


The project aims to support the implementation of the United Nations Sustainable Development Goals (SDGs) with a focus on circular economy for the financial sector, favoring the generation of a business ecosystem that connects the supply of sustainable projects in circular economy with the sources of financing.


Financial institutions play a fundamental role in accelerating this transition, by facilitating the financing of companies and projects that apply circular business models. The Colombian financial system, with the support of Asobancaria, is strengthening its Green Products and Services strategy within the framework of the Green Protocol, with the circular economy being one of the strategic objectives.


The IDB Group has significantly intensified its efforts to address climate change, following its announcement at COP26 that it is committed to aligning 100% of new deals with the Paris Agreement goals by January 2023.


To comply with the Paris Agreement, the SDGs, reach the Net-Zero route to 2050, and face the climate and biodiversity crisis, it is necessary that the flow of investment be directed to sustainable economic activities with a positive socio-environmental impact. Circular economy strategies can help reduce investment risk, diversify business models and allow companies to better anticipate stricter regulation and changes in consumer preferences, among many other benefits that point to compliance for national and international sustainability agendas.


This agreement is part of the effort that IDB and IDB Invest have been making for years to accelerate the circular economy agenda in the region, and particularly in Colombia.


About IDB

The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public- and private-sector clients throughout the region.



About IDB Invest


IDB Invest 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 $14.8 billion in asset management and 376 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 Asobancaria


The Banking and Financial Entities Association of Colombia, Asobancaria, is the most representative union in the Colombian financial sector, thanks to its leadership, credibility, contribution to the development of the country, and its contribution to consolidating the confidence, sustainability and competitiveness of the Colombian financial sector. Sustainability is one of the fundamental pillars of the guild, and to that point its mission of encouraging environmental protection practices, promoting the superior interests of the country and the development of the financial sector, has been increased.


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