Shifting just 1% of total global financial assets – estimated at EUR 352 trillion, 2.5 annually – could bridge the existing financing gap needed for delivering the Paris Agreement on Climate Change

and the UN Sustainable Development Goals.

Tuesday, June 15, 2021 16:00 to 17:15

On June 15, the brainstorming session ‘Partnerships for climate finance and a green recovery’ took place at the European Development Days 2021 (#EDD21) to seek innovative approaches to trigger transformation for sustainable finance in the Latin America and the Caribbean region and to promote a green recovery after the COVID pandemic.

This session, joined by 60 participants, was organised by the European Union EUROCLIMA+ programme and its implementing partners Agence Française de Développement (AFD) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH; the regional Blending Facilities Latin America Investment Facility (EU-LAIF) and the Caribbean Investment Facility (EU-CIF) with the support of the European Investment Bank (EIB), the Inter-American Development Bank (IDB) the Climate Policy Initiative (CPI) and the Economic Commission for Latin America and the Caribbean (ECLAC).

Barbara Buchner, Global Managing Director of Climate Policy Initiative, opened the session with an inspirational keynote proving that it is possible to engage in such an ambitious green recovery plan and climate investment targets. “Making the financial sector help close the investment gap and promote a green recovery in Latin America and the Caribbean requires a whole system transformation from local action to global coordination. Many people say this cannot be done, but I disagree. As human beings, we have a pretty good track record of doing things that the majority say cannot be done. (...) I believe the investment will bring significant opportunities that will benefit us for generations. We need to move quickly to reach our goals,” said Buchner.

After the keynote speech, participants — including European and Latin American authorities, financial sector representatives and innovation experts — joined three parallel breakout groups moderated by Joseluis Samaniego, Chief of the Division of Sustainable Development and Human Settlements of the United Nations ECLAC; Kristin Lang, Head of Division for the Public Sector in Latin America and Caribbean at EIB; and Mike Enskat, Head of Energy, Water and Mobility at the GIZ Global Programmes Area.

Using a case study as a basis, groups discussed three of the main challenges to bridge the green financing gap, namely: (i) Strengthening national and financial framework conditions; (ii) Developing bankable project pipelines and (iii) Creating strong partnerships between technical cooperation and the financial sector to close the climate investment gap and to promote a green recovery.

Among the valuable contributions of the participants, it stands out that good governance, integrated approaches, coordination and financial cooperation among actors representing different sectors, as well as targeted capacity building, are key to building stronger climate investment pipelines.

Other proposals include the mainstreaming of climate change considerations across public and private investment management, the implementation of a clear regulatory framework (including contracting and procurement), public incentives for the green transition and spending on new technologies.

According to the brainstorming session participants the combination of financial instruments including senior debt, green bonds, concessional loans and financial guarantees, coupled with tailored technical assistance will contribute to attract private investors, reduce risks of projects and promote the development of green technologies.

Participants felt glad for the opportunity this session brought to make synergies and partnerships for a strong climate investment pipeline. The participants' valuable inputs will serve as the basis for an upcoming reflection paper.

#GreenFinance #ClimateFinance #GreenEconomy

Contacts:

Silvia Brugger, GIZ Coordinator Climate Governance │ EUROCLIMA+ Programme: This email address is being protected from spambots. You need JavaScript enabled to view it.

Gisela Campillo, Programme Manager of Latin America Investment Facility: This email address is being protected from spambots. You need JavaScript enabled to view it.

Guillermo Dascal, Climate Change Expert│ EUROCLIMA+ Programme: This email address is being protected from spambots. You need JavaScript enabled to view it.