The In­ter-Amer­i­can De­vel­op­ment Bank (IDB) says it has en­tered in­to three new part­ner­ships with in­ter­na­tion­al de­vel­op­ment or­ga­ni­za­tions to sup­port the de­vel­op­ment of green bond mar­kets in Latin Amer­i­ca and the Caribbean and oth­er emerg­ing mar­kets.

The part­ner­ships were an­nounced dur­ing the Fi­nance in Com­mon Sum­mit that ends here lat­er on Wednes­day.

The part­ner­ships are part of ef­forts by the IDB and oth­er in­ter­na­tion­al and re­gion­al de­vel­op­ment in­sti­tu­tions to in­crease their lev­el of co­op­er­a­tion to im­prove syn­er­gies and mo­bi­lize more pri­vate cap­i­tal to help de­vel­op­ing coun­tries meet their com­mit­ments un­der the Paris Agree­ment and ad­vance their sus­tain­able de­vel­op­ment goals.

The IDB said I had teamed up with KfW De­vel­op­ment Bank on be­half of the Ger­man Fed­er­al Min­istry for Eco­nom­ic Co­op­er­a­tion and De­vel­op­ment to cre­ate the Green Bond Part­ner­ship (GBP).

It said the part­ner­ship will pro­vide two mil­lion Eu­ro (One Eu­ro=US$1.29 cents) for the IDB to fi­nance mea­sures to de­vel­op and pro­mote stan­dards, best prac­tices, and fi­nan­cial in­stru­ments to en­hance the de­vel­op­ment of green bond mar­kets in Latin Amer­i­ca and the Caribbean.

The two in­sti­tu­tions are in the fi­nal stages of ne­go­ti­a­tions to fi­nal­ize the agree­ment, which builds on a long-stand­ing col­lab­o­ra­tion be­tween the IDB and Ger­many, to de­vel­op green cap­i­tal mar­kets in the re­gion.

The IDB said the part­ner­ship will al­so strength­en the IDB’s Green Bond Trans­paren­cy Plat­form (GBTP) and sup­port ca­pac­i­ty build­ing, stan­dard­iza­tion, and dig­i­ti­za­tion of green bond in­for­ma­tion, reg­u­la­to­ry sup­port for tax­onomies, as well as cre­ate a knowl­edge acad­e­my to fa­cil­i­tate well-in­formed in­vest­ment de­ci­sions in this type of as­set.

The GBTP was launched in April 2021, and since then it has be­came a key re­port­ing tool for is­suers of green, sus­tain­able, and sus­tain­abil­i­ty-linked bonds. The plat­form cur­rent­ly cov­ers 80 per cent of the Latin Amer­i­can and the Caribbean mar­ket vol­ume, es­ti­mat­ed at US$42 bil­lion, hav­ing added 235 green and sus­tain­able bond is­suances vol­un­tar­i­ly to the plat­form from 13 ju­ris­dic­tions in the re­gion.

More than 400 mar­ket ac­tors have been trained to use the plat­form, which sup­ports se­cure, con­sis­tent, trans­par­ent, and cred­i­ble re­port­ing of im­pacts gen­er­at­ed by all green and sus­tain­able bonds is­sued in Latin Amer­i­ca and the Caribbean.

The IDB al­so an­nounced a part­ner­ship with a group of six oth­er de­vel­op­ment or­ga­ni­za­tions to sup­port green bond mar­kets in emerg­ing mar­kets and de­vel­op­ing economies led by the Eu­ro­pean Com­mis­sion.

As one of the key part­ners of the ini­tia­tive for Latin Amer­i­ca and the Caribbean, IDB and IDB In­vest are ex­pect­ed to chan­nel re­sources from GG­BI to sup­port the orig­i­na­tion of green bonds, pro­vide in­cen­tives to sup­port mar­ket de­vel­op­ment and pro­mote the adop­tion of ver­i­fi­ca­tion process­es and com­pli­ance with in­ter­na­tion­al and har­mo­nized re­port­ing stan­dards.

More­over, the ini­tia­tive is ex­pect­ed to sup­port the adop­tion of the IDB’s Green Bond Trans­paren­cy Plat­form, which cur­rent­ly op­er­ates in Latin Amer­i­ca and the Caribbean, as a key plat­form to re­port on green bond re­sults in oth­er re­gions.

Be­sides the IDB and IDB In­vest, the co­op­er­a­tion brings to­geth­er the Eu­ro­pean In­vest­ment Bank, the Eu­ro­pean Bank for Re­con­struc­tion and De­vel­op­ment, the Ital­ian Cas­sa De­posi­ti e Presti­ti, the Span­ish agency for In­ter­na­tion­al De­vel­op­ment Co­op­er­a­tion (AE­CID), the Ger­man KfW De­vel­op­ment Bank, the French PROPAR­CO of the AFD Group, act­ing as Team Eu­rope, as well as the Green Cli­mate Fund.

The IDB said that to fur­ther sup­port the ex­pan­sion of the GBTP, four in­ter­na­tion­al de­vel­op­ment or­ga­ni­za­tions en­dorsed dur­ing the event a joint de­c­la­ra­tion ex­press­ing their sup­port to pro­mote the adop­tion of the plat­form by oth­er coun­tries out­side the Latin Amer­i­can and the Caribbean re­gion.

The en­dorse­ment is part of a joint de­c­la­ra­tion where the IDB, the Eu­ro­pean In­vest­ment Bank (EIB), the Agence Française de Développe­ment (AFD), KfW De­vel­op­ment Bank, and the Span­ish Agency for In­ter­na­tion­al De­vel­op­ment Co­op­er­a­tion (AE­CID) pledge to work to­geth­er to in­crease trans­paren­cy in green bond mar­kets.

CARTA­GE­NA, Colom­bia –

CMC/ag/ir/2023