Key climate finance needs in Latin America and the Caribbean (LAC) include: i) reducing emissions, ii) adapting to climate change, iii) ensuring resilience in infrastructure and communities, and iv) investing in profitable nature-based solutions. Based on these needs, the Inter-American Development Bank Group (IDB Group) and the Government of the United Kingdom agreed to expand their collaboration in the LAC region through a new phase of the United Kingdom Sustainable Infrastructure Program (UKSIP).

The new phase brings into scope small and island countries in the Caribbean basin and Central America, and continues collaboration with existing partner countries Brazil, Colombia, Mexico, and Peru.

The program will provide technical cooperation support to the public and private sectors to develop policies, market infrastructure and invest in projects that can be replicated and scaled. Additionally, it will provide concessional resources for blended financing, including debt, equity, guarantees and performance-based incentives, to support and shape sustainable infrastructure projects and mobilize private investment in climate action.