IDB and IMF to Deepen Ties to Catalyze Climate Reforms and Private Sector Resources for Climate Action

IMF News, June 22, 2023

Source details

Canonical URL: IDB and IMF to Deepen Ties to Catalyze Climate Reforms and Private Sector Resources for Climate Action

Press Release No. 23/226; June 22, 2023.
Ilan Goldfajn, President of the Inter-American Development Bank (IDB), and Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), met to discuss enhanced collaboration to support climate reforms and catalyze private sector resources in Latin America and the Caribbean, within the parameters of their respective mandates.
Working groups are being set up to work on the design and implementation of climate finance solutions both at regional and country level.

Objective: support countries in the region to build resilient and decarbonized economies by 2050.
Rationale: substantial investments in climate change adaptation and mitigation are needed to achieve resilient and decarbonized economies by 2050.
Aim: strengthen combined efforts to identify and design reforms and provide capacity development in support of climate goals, and to help attract investments, including private capital.

The RSF was operationalized in October 2022.
Purpose of the RSF: help countries reduce macro-critical risks, strengthen economic stability and build resilience by tackling long-term structural challenges, including those related to climate change.
Reform measures under the RSF will support countries’ mitigation and adaptation efforts.
Collaboration emphasis: explore complementarities between the RSF-supported reforms and IDB funding and guarantees to scale and mobilize private climate financing.

The IDB is designing a facility to identify, prioritize and prepare a robust pipeline of green and resilient infrastructure projects across all key sectors.
The facility will help governments in Latin America and Caribbean in their upstream regulatory and institutional work.
This is part of a joint effort with other multilateral partners to help countries develop prudent and well-structured investment project pipelines, consistent with their national development plans.

The IMF and IDB will enhance strategies for countries to accelerate climate financing through:
- policy reforms,
- capacity development support,
- evaluating tailored financing arrangements such as blended finance instruments and green bonds,
- exploring potential designs for a regional green fund structure.
Each institution will act within its respective mandate to explore complementarities and mobilize private climate financing.

IDB President Ilan Goldfajn: “In the context of global calls for enhanced multilateral cooperation among IFIs, we are happy to identify complementarities with the IMF and work to adopt concrete actions in Latin America and the Caribbean to address climate change. We are committed to further explore strengthening our partnership with the IMF to mobilize capital and to find innovative solutions to multiply climate financing for the countries in the region.”.”
IMF Managing Director Kristalina Georgieva: “We are excited to start a new chapter of collaboration with the IDB to help countries tackle the impact of climate change, which threatens growth, jobs, and prosperity across Latin America and the Caribbean. Vast resources are needed, so working together is vital, and we see many complementarities between the work of the IMF and the IDB. We look forward even stronger collaboration in support of our membership as they address climate and resilience challenges.”

IDB: Established in 1959; devoted to improving lives; leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean; conducts research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.
IMF: Organization of 190 countries; created in 1945; works to foster global monetary cooperation, secure financial stability, facilitate international trade, and promote high employment and sustainable economic growth by offering policy advice, lending, and building capacity to its members.
Media contact listed: PRESS OFFICER: Maria Candia; Phone: +1 202 623-7100; Email: MEDIA@IMF.org; @IMFSpokesperson

Source: IMF press release, June 22, 2023.