CAF’s Board of Directors approved by consensus this week the tenth patrimonial strengthening, the largest in the history of the multilateral credit organization, made up of 19 countries in Latin America and the Caribbean, as well as Spain, Portugal and 13 private banks in the region.
The patrimonial strengthening will be in charge of the partner countries in accordance with their shareholding and will be done gradually.
“We are going in two directions in the next 10 years: First, the social and economic reactivation of Latin America with an inclusive and equitable accent driven from the infrastructure sector, working very hard with the private sector”, The bank’s chief executive, Sergio Díaz-Granados, said in an interview with Reuters.
“And the other is to turn CAF into the green bank in the region, the bank not only for a sustainable reactivation, but also thinking about the carbon neutrality to which Latin America and the Caribbean must go”, explained.
The manager announced that in the next five years, $ 25 billion to help the countries of the region increase climate resilience, promote the energy transition, reduce greenhouse gas emissions, and strengthen the conservation of natural ecosystems and biodiversity.
The institution’s green financing will go from 24% in 2020 to 40% in 2026. Carbon neutrality seeks net zero carbon dioxide emissions as part of a global commitment to combat climate change and reduce its effects.
Diaz-Granados assured that the bank has approved a bond placement quota for 37,000 million dollars for the next few years and that the issues will depend on the behavior of the markets.
The manager revealed that green financing will include projects of energy transition and electromobility in each country, while work will begin to improve network connections in South America and Latin America and make energy consumption more efficient.
The president of CAF revealed that with the energy transition, the reactivation of tourism and a digital revolution, almost 15 million jobs could be generated in Latin America in the next decade, more than those lost due to the impact of the Covid pandemic. 19.
Source From: Ambito
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