Earth Today | IDB to align operations with global climate agreement by 2023

THE INTER-AMERICAN Development Bank (IDB) has announced that its loans and projects will be fully aligned with the global climate deal, the Paris Agreement, by 2023.

The move is to help Latin America and Caribbean countries fight climate change.

The announcement comes as world leaders gather at COP26, the annual United Nations climate change conference, to work on ways to decelerate global warming and fulfil climate goals agreed at previous summits.

Alignment requires the IDB Group’s work to be consistent with a country’s net-zero emissions and climate-resilient development goals. It must also be compatible with the Paris Accord’s overall long-term decarbonisation objective.

“We are also pushing past the Paris Agreement objectives to help address this truly global challenge. We know that if we prioritise smart investments today, the cornerstone of our global fight against climate change can mutually reinforce our pandemic recovery efforts and we can speed up our responses,” said IDB President Mauricio Claver-Carone.

“Aligning our work to Paris Agreement objectives furthers our commitment to limit the temperature rise to well below two degrees Celsius and build climate resilience. But this alone is not enough.”

The IDB also announced another ambitious climate target to provide $24 billion for climate and green finance over the next four years. Green finance extends beyond climate to include nature, biodiversity, pollution, and other environmental issues.

Between 2015 and 2020, the IDB invested in 28 projects with nature-based solutions components, with a total financing of $815 million. These projects leveraged an additional $437 million in financing from partners, amounting to nearly $1.25 billion.

“We are pushing the envelope on our financing, improving our internal structure to prioritise climate action, and increasing our engagements and external partnerships,” said Claver-Carone.

“Our role, as the region’s leading development bank, is to help our 26 borrowing member countries mitigate and adapt to climate risks. We are ready to help seize an unprecedented opportunity to achieve a decarbonised and climate-resilient future in the region.”