Environment

Eight intl. orgs join forces at COP28 for green bond sustainable financing

Dubai, Dec 4 (EFE).- Eight international organizations announced Monday at the United Nations Conference on Climate Change (COP28) in Dubai the formation of a platform aimed at achieving, through green bonds, among other means, sustainable sovereign financing linked to climate and nature.

The group would initially be led by the Inter-American Development Bank (IDB) and the International Development Finance Corporation (DFC) of the United States, who will monitor the progress of the work to ensure its efficiency.

The European Investment Bank, the Asian Development Bank, the African Development Bank, the Green Climate Fund, the Global Environment Facility and the French Development Agency complete the list of participating entities.

Among the instruments they plan to implement are the use of different financial solutions to mobilize capital from the private sector through credit improvement such as debt swaps, green or sustainability-linked bonds, and credit insurance and Political Risk Insurance (PRI.)

IDB President Ilan Goldfajn said the purpose of all partners is to increase “the effectiveness, efficiency, affordability, accessibility, availability and scalability of financial instruments,” adding that “innovative financing will be vital to help countries access the necessary resources.”

DFC CEO Scott Nathan added in the statement that the climate crisis “cannot be addressed by any organization acting in isolation,” and spoke about commitment to work, “based on proven models that offer concrete solutions.”

In the last 18 months, their organization provided almost $2 billion in PRI insurance to support nature conservation debt transactions.

As for the IDB, in the same period, they approved $585 million in partial credit guarantees that, according to their estimates, mobilized more than $700 million from other development partners, generating nearly $500 million in savings for marine conservation.

Financing is one of the main topics of debate at the conference in Dubai, which will be held until Dec. 12, where countries such as the United States committed to allocate $3 billion for the Green Climate Fund. EFE

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