CAF -Development Bank of Latin America- and the Green Climate Fund (GCF), signed an agreement to finance USD 150.2 million in small-scale renewable energy, energy efficiency, forestry, and climate-smart agriculture projects, focusing on inclusive gender investments in Chile, Ecuador, Panama and Peru.
Joint resources from CAF and the GCF will be assigned to the “Regional Program for Local Financial Institutions”, designed to finance small and medium-sized enterprises (SMEs) in the above-mentioned countries. The program includes a technical assistance grant component to strengthen the technical capacities of financial institutions and SMEs in respect to environmental, social and gender policies, as well as technical evaluation of projects.
The program illustrates GCF’s approach to strengthen domestic markets for climate and is part of CAF’s strategy to become the green bank of Latin America and the Caribbean. The blended resources contribute to an economic recovery based on low-carbon emissions and resilience against climate change.
As announced at the COP26 in Glasgow, CAF is committed to financing up to USD 25.000 million in green operations that will foster GHG mitigation, climate resilience, preserve biodiversity and restore natural ecosystems.