The UK has joined IDB Invest, a member of the Inter-American Development Bank Group (IDB Group) that focuses on development through the private sector, in an effort to support small and medium-sized businesses in Latin America and the Caribbean and advance the UK’s efforts to combat climate change and reduce poverty there.
Ilan Goldfajn, president of the IDB, and James Scriven, CEO of IDB Invest, joined Development Minister Andrew Mitchell in London to complete the UK’s membership in the organization that provides nearly £5 billion in annual financing to businesses throughout the region. By joining, the UK will be able to influence the annual investments the organization makes and advance its development goals through the work of the Bank.
The UK and IDB Invest will build on their existing partnership through the UK Sustainable Infrastructure Programme (UKSIP), which supports Mexico, Colombia, Peru, and Brazil to reduce their emissions and transitioning to sustainable infrastructure.
UKSIP support for IDB Invest projects is expected to raise over £ 150 million in private finance for the development of two solar power plants and the purchase of 400 electric buses.
The solar plants will produce around 440GWh per year, the equivalent power required for 230,000 homes in Colombia. Green electric buses are expected to save an estimated 500,000 tonnes of carbon dioxide over their lifetime – the equivalent to taking 100,000 cars off the road for a year.
Read Also: uk-efforts-to-deal-with-energy-crisis-at-risk-of-missing-net-zero-target
In the last decade, IDB Invest has listed over £ 5 billion in bonds on the London Stock Exchange. This demonstrates the strength of its partnership with the City and London’s role as the leading hub globally for green finance – ranked first in the world, for a third consecutive time, according to the Global Green Finance Index.
Last year, British International Investment, the UK’s own development finance institution, made its first investment in the Caribbean for over twenty years, investing alongside IDB Invest and local partners with the aim to deliver thousands of jobs and support productive, sustainable and inclusive economic growth across the region.
During their meeting, Minister Mitchell and President Goldfajn agreed on the critical role of the Bank Group in increasing global climate ambitions. The Minister set out the UK’s commitment to international investment in green businesses, stressing its importance in addressing the strategic vulnerability of climate change.
The UK’s International Development Strategy also outlines its commitment to help countries strengthen their energy security and provide affordable, reliable, and clean energy for all, employing the full development finance toolkit, including British International Investment. This put the UK’s strengths – its capital markets, innovation, and expertise in science and technology – to work in mobilizing more private finance to advance climate and nature goals.
Story adapted from UK.GOV
