The president of the Inter-American Development Bank (IDB), Ilan Goldfajn, said in an interview with AFP that the IDB seeks to become an “umbrella” for all climate-related projects in the Amazon, being an important source of financing for Latin America and the Caribbean. Multilateral development banks such as the IDB play a crucial role in integrating climate concerns into the international financial architecture, an issue to be discussed at a summit in Paris under the auspices of French President Emmanuel Macron.
Goldfajn stresses that the Amazon covers almost 40% of South America and spans nine countries, and there is a need to unite all existing initiatives in the region. There are various efforts in Brazil, Colombia, Peru, and European countries such as France, as well as initiatives by the IDB itself and NGOs. Deforestation has caused a loss of 20% of the Amazon area in the last century, but recovery projects are being implemented.
The IDB, created in 1959, has established itself as the main international long-term financing institution for Latin American and Caribbean countries. During the past year, it approved loans totaling US$14 billion, especially for Argentina, Brazil, and Mexico, for projects mainly related to water, energy, and business development. Goldfajn seeks greater efficiency in the financing of climate projects at the international level, considering the results of internal evaluations that point to the importance of making better use of the loans granted.
The IDB’s goal is to lend more effectively than in the past and to increase lending to countries that have experienced economic crises and climate disasters in recent years. Goldfajn stresses that the ultimate goal is to measure the impact on poverty reduction, access to sanitation, clean water, and connectivity. The IDB president advocates for innovative financing and greater private sector participation, given the lack of international public financing.
Among the options mentioned is the possibility of relieving a country’s debt in exchange for a commitment to decarbonize its economy. It is also proposed to improve development aid and loans granted by the IDB to reduce interest rates on repayments. Goldfajn mentions the potential of lithium in the region, which has vast reserves estimated at two-thirds of the world’s reserves. He stresses the importance of implementing appropriate public policies to become one of the main suppliers of minerals needed for the future, considering that 30% of the energy produced in the region is already clean.