Our Focus on Climate Action
In 2017 alone, IDB Invest mobilized around $215 million in new climate-related donor resources, bringing the total under our management to more than $780 million.
Tailor-made Services
Across every area of our business, we are developing financial products and advisory services tailored to the challenges of climate change.
Across every area of our business, we are developing financial products and advisory services tailored to the challenges of climate change. The effects of climate change can vary widely depending on the type of business, so we help our clients think through their own potential problems and opportunities: Where do they face the biggest risks? How can they manage those risks in a way that makes financial sense? Do they need to adjust their day-to-day operations to adapt to a changing climate? Is their supply chain as resilient as it could be? How can they reduce their own energy footprint? What are the costs and benefits of making specific investments? Could the challenges of climate change open new markets for them?
Once we have a more complete picture, we can advise clients on possible solutions and steps forward. Here are some examples of what we are doing in different sectors:
Financial Institutions: We work with different types of lending institutions in the region to make green financing available for climate-smart agriculture, energy efficiency and renewable energy—with an emphasis on developing products for underserved markets such as smallholder farmers or micro, small and medium-sized businesses. We are also helping financial institutions implement climate factors into their business models, decision-making processes and corporate governance practices, to enable them to manage the possibility of stranded assets and other climate-related risks.
Infrastructure: IDB Invest continues to finance many large-scale renewable energy projects in the region and take small renewable pilot projects to scale. Other projects include investments in low-carbon public transportation, green buildings and efficient street lighting. Together with the IDB, which works with the public sector, we are identifying the potential for public-private partnerships that can incorporate adaptation considerations into large infrastructure projects such as airports, seaports and highways.
Corporates: Agribusiness and tourism are just two examples of sectors that stand to be hit hard by climate change. In some parts of the region, farmers are already having to adapt, such as by replacing crops or altering their irrigation or growing practices. In the tourism sector—especially in the Caribbean—reducing vulnerability to natural hazards is a priority. We are helping these and other types of businesses with technical assistance and financing, including the use of external resources.