DUBAI –At the 2023 United Nations Climate Change Conference (COP28), IDB Invest and the philanthropic investment organization Allied Climate Partners (ACP) agreed to support climate-related projects, and projects in Central America and the Caribbean.

This collaboration aims to accelerate the growth of bankable, climate-related projects and businesses in the Caribbean & Central America through areas of collaboration including IDB Invest sharing its expertise in manager selection and fund creation activities, and IDB Invest’s potential investment in ACP’s Caribbean & Central America fund.

Within the scope of the signed Memorandum of Understanding (MoU), IDB Invest will provide its expertise to ACP, exploring the possibility of participating in ACP’s initial fund focused exclusively in the Caribbean & Central America.

The MoU seeks to add strategic value to each of ACP’s underlying regional fund managers and their investees. Underlying funds may benefit from IDB Invest’s experience to add value across Caribbean & Central American markets. Additionally, IDB Invest may also provide technical assistance support to fund managers’ underlying investments.

James Scriven, CEO of IDB Invest said, “At IDB Invest, we see this partnership as a crucial step towards bridging the gap between decarbonization and development. Through early-stage financing, we're not just investing in a greener future but also creating significant economic, environmental, and social impacts in the region. This partnership is a testament to our commitment to sustainable development and a cleaner, more resilient future for all.”

ACP is seeking to aggregate a $825 million investment global platform, backed by $235 million in philanthropic capital, to support the establishment of funds focused on the early, development stages of climate-related projects and businesses initially in four regions: Africa, Southeast Asia, the Caribbean & Central America, and India.

Approximately 75% of each fund will be senior equity, provided by MDBs, DFIs, sovereigns, and mission-aligned private sector investors.  Through this model, ACP seeks to accelerate the climate transition and improve livelihoods in emerging economies and deliver significant environmental and social impact.

Latin America and the Caribbean at COP28

The countries of Latin America and the Caribbean are a critical part of the solution to global climate change challenges. In the IDB Pavilion of the Americas, the Bank is hosting more than 30 events with international leaders and experts to showcase initiatives on climate action, from cutting-edge financial instruments to the conservation and sustainable use of natural resources, the Amazon, a just economic transition, and more. Journalists covering COP28 on site are welcome to visit the pavilion, with no registration required. Consult the event schedule here. For journalists covering COP28 remotely, register to access broadcasts of selected events.

Location: IDB Pavilion of the Americas at Blue Zone Pavilion, Opportunity District (OA04G2).

About IDB Invest

IDB Invest, a member of the Inter-American Development Bank Group, 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 $16.3 billion in assets under management and 394 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 Allied Climate Partners

ACP is a philanthropic investment organization with a mission to accelerate the climate transition and improve livelihoods in emerging economies by increasing the flow of capital to bankable, climate-related projects and businesses. ACP selects regional investment managers in emerging economies and supports them with first-loss capital, expertise, and the mandate to address a critical financing gap at the early, risk-oriented stages of the development process for climate-related projects and asset-oriented businesses. Without this support, many projects and businesses struggle to attract the necessary capital to achieve their climate-related goals. By proving this model, ACP aims to induce commercially-oriented public and private sector investors to invest where they likely would not otherwise.