The Global Green Bond Initiative (GGBI) and the Inter-American Development Bank (IDB) have partnered to support the development of green bond markets in Latin America and the Caribbean (LAC).

The partnership will provide technical assistance to green bond issuers in LAC, help to develop green bond frameworks, and promote the use of green bonds for sustainable development.

The GGBI is a coalition of development finance institutions and multilateral organizations that is working to promote green bonds in emerging markets and developing economies. The IDB is a regional development bank that has been working to promote sustainable development in LAC for decades.

The partnership is expected to have a significant impact on the development of green bond markets in LAC. By providing technical assistance to green bond issuers, helping to develop green bond frameworks, and promoting the use of green bonds for sustainable development, the partnership will help to attract private capital to projects that will benefit people and the planet.

How the Partnership Will Work

The partnership will work in three phases:

1. Technical assistance: The GGBI and IDB will provide technical assistance to green bond issuers in LAC, helping them to develop and structure green bond issuances. This will include providing guidance on the eligibility criteria for green projects, the development of green bond frameworks, and the marketing and issuance of green bonds.
2. Green bond frameworks: The GGBI and IDB will help to develop green bond frameworks in LAC, which will provide guidance to issuers and investors on how to structure and use green bonds. These frameworks will be based on international best practices and will be tailored to the specific needs of LAC.
3. Promoting the use of green bonds: The GGBI and IDB will promote the use of green bonds for sustainable development, raising awareness of the benefits of green bonds among issuers, investors, and policymakers. This will include organizing workshops and conferences, publishing research, and developing educational materials.

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The Impact of the Partnership

The partnership is a significant step forward in the development of green bond markets in LAC. By providing technical assistance, developing green bond frameworks, and promoting the use of green bonds, the partnership will help to attract private capital to projects that will benefit people and the planet.

Green bonds are a type of debt security that is issued to finance environmentally friendly projects. They have been growing in popularity in recent years, as investors increasingly seek to invest in sustainable projects.

The partnership between the GGBI and IDB will help to accelerate the development of green bond markets in LAC. This will provide much-needed financing for sustainable projects in the region, such as renewable energy, energy efficiency, and climate adaptation.

The partnership is also expected to raise awareness of the benefits of green bonds among issuers, investors, and policymakers in LAC. This will help to create a more favorable environment for the issuance and use of green bonds in the region.

Overall, the partnership between the GGBI and IDB is a positive development for the development of green bond markets in LAC. It is expected to have a significant impact on the mobilization of private capital for sustainable projects in the region.