1. Home
  2. »
  3. Our Initiatives
  4. »
  5. Green Finance

Green Finance

Green finance is a broad term that refers to increasing the level of financial flows (from banking, microcredit, insurance and investment) from the public and private sectors towards sustainable development priorities. Green finance includes, but is not limited to, climate finance. Read More


Scope of Activities

Green Banks

Tailored support for National Development Banks to design and promote green financial instruments; Structuring a green financing strategy, including strengthening of its institutional capacity for NDBs.

Innovative Financial Solutions

Public–Private Partnerships (PPPs), interconnected zones, renewable energy, energy efficiency.

Intersectoral Dialogue

Financial Innovation Labs (LABs) to promote dialogue with regulators, capital markets and financial sector stakeholders.

The Regional Group for the Development of Public-Private Partnerships (PPPs) is an initiative of ALIDE and the IDB, with the purpose of supporting the institutional strengthening of Public Development Banks (PDBs) in the Structuring and Financing of Public-Private Partnerships, responding to the infrastructure investment needs in the region and the potential that National Development Banks (NDBs) can bring to attract private financing for public-private partnerships that promote new investments in infrastructure.

The LATAM projects hub platform seeks to bring together the most relevant infrastructure and energy opportunities in the region open to private investment.

The IDB and ALIDE joined forces with Mexico's Project Hub (Banobras) and the Brazilian Development Bank (BNDES) to develop this regional platform that provides detailed and updated information to investors.

This initiative is expected to grow with the incorporation of other Latin American countries through the NDBs and PPP units focused on structuring PPP projects and concessions.


Where it is implemented


Scaling up investments by Argentinian SMEs in renewable energy and energy efficiency


GHG emissions calculation and emission reductions of its operations portfolio
Sustainable Finance Framework
Structuring municipal PPPs in Minas Gerais to standardize and optimize the contracting process
The BDMG Sustainability Bond Framework
Brazilian Lab for Financial Innovation (LAB)
GHG emissions calculation and emission reductions of its operations portfolio
Sustainable Finance Framework
Brazilian Lab for Financial Innovation (LAB)
GHG emissions calculation and emission reductions of its operations portfolio
Sustainable Finance Framework
Institutional innovation and project management process
Brazilian Lab for Financial Innovation (LAB)


The Government of Chile is promoting the development of strategies at the national scale to promote investments in Public-Private Partnerships and green private investments, through dialogue tables between the public and the private sector (the “Green Agreement”).

CORFO will be developing and implementing innovative financial instruments and technical assistance to be deployed through Chile’s first-tier, local, financial institutions to promote private investments in low-carbon projects including renewable energy, energy efficiency and sustainable transport measures.


Greenhouse Gas Emissions mitigation by Renewable Energy Projects in Non-Interconnected Zones (ZNI) - CO-T1409
Financing mechanisms for investment in Energy Efficiency in public lighting, promoting the replacement of low-efficiency luminaires with LED luminaires

El Salvador

Energy Savings Insurance (ESI) for private energy efficiency investments by Small and Medium-Sized Enterprises


Dialogue for the development of financing initiatives for distributed generation
Potential of energy efficiency and renewable energy investments in the tourism sector
Financial Innovation Labs (LAB Mexico)




  • The project aims to support the development of a business model for green finance, based in the identification of opportunity and actionable areas, and assisting BROU in being one of the key actors at the country and region in supporting sustainable finance.
  • The Project focused in: i) providing environmental and risk management of the BROU’s portfolio; ii) seeking opportunities to improve efficiency; iii) analysing and ascertaining sectors, zones or structures that may be riskier, iv) exploring the development of potential financial instruments to address identified risks; v) promoting BROU’s Management Environmental and Social Risks System (ESMS) in order to reduce risks while increasing credit volume, so as to identify and mitigate those risks in the lending activities.

Project Map

Click icon to locate all active initiatives in the region.


Why Green Finance?

GF scales up public and private investments that provide environmental benefits, through new policies, financial institutions and financial instruments, such as, inter alia, green banks, green bonds, carbon market instruments, innovative financial technologies, labelling, guarantees for PPPs.

Investment in the green economy needs to take place on a larger scale over coming decades in order to achieve the Sustainable Development Goals and the global objectives of the Paris Agreement.

Green Finance allows overcoming barriers to green investment such as:

Regulatory FrameworksRegulatory frameworks not articulated with long-term sustainable economy
Lack of ConflictingLack or conflicting public financial incentives
Investment GapsInvestment gaps in clean and green technologies, finance for sustainable natural resource-based green economies, climate smart blue economy and circular economy.
MisaligmentMisalignment of public sector financing decision-making with the environmental dimension of sustainable development


Success Cases


3 years since the establishment of the LAB

Banco do Brasil is among the 10 most sustainable companies in the world

The bank was rated 1st in the ranking of financial institutions.

Banco do Brasil (BB) was considered the most sustainable financial institution in the world, and ranks among the ten most sustainable corporations in the “Global 100 Most Sustainable Corporations in the World” index, produced annually by the Canadian publication Corporate Knights. The announcement was made this Tuesday (22) during the World Economic Forum, in Davos (Switzerland).

First Certified Agricultural Green Bond in Oaxaca


Partners on the Ground

Who is supporting GFI

This Initiative is being promoted by the IDB with support from the International Climate Initiative (IKI) of the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB).

Furthermore, the IDB has partnered with key determined ‘green’ stakeholders and National Development Banks to design and promote green financial instruments in the Latin America and the Caribbean region.


  • Stay updated on the latest trends of Green Finance


Visit other Initiatives