IDB Invest and Finland launch blended finance climate fund in Latin America and the Caribbean

IDB Invest together with Finland announced the launch of the Finland-LAC Blended Finance Climate Fund, which will finance climate change mitigation and adaptation projects in the private sector in Latin America and Caribbean (LAC). Finland, through the Ministry of Cooperation for Development and Foreign Trade, signed a 50 million euros contribution to the new Fund.

The single-donor trust Fund seeks to curb climate change and increase climate resilience, promote equality and inclusion, providing concessional financing to climate finance projects with a cross-sectoral focus on: the poorest and most vulnerable countries and communities, gender equality, diversity, inclusion and biodiversity.

IDB Invest will originate, execute and manage the Fund’s blended finance resources using various investment financial instruments, including debt instruments, guarantees and equity investments, as well as performance-based incentives. The Fund’s purpose is aligned with the IDB Group Climate Change Action Plan, which emphasizes the essential role that partner resources play in promoting sustainable development, and with the institution’s commitment to the 2030 Agenda in LAC.