The IDB presented three selected posts from its blog covering the topics of financial innovation in the real estate industry, private financing for the electricity sector and private sector participation in the development of environmentally friendly “green” housing.

Closing the housing gap in Latin America and the Caribbean (LAC) requires at least US$70 billion per year. Financial innovation could be one of the most promising solutions. In recent years there have been great advances in access to financing for home purchases with new approaches to gender and environmental sustainability.

The IDB has estimated that LAC needs more than $577 billion to close the electricity gap by 2030. About 70% of that total needs to be spent on building new generation, transmission and distribution infrastructure, while the remaining investment is geared toward replacing and maintaining existing assets. The private sector will be a critical source of capital investment and will also contribute to the innovation and efficiency of electric power systems.

Finally, it is estimated that buildings in LAC consume 21% of treated water and 42% of electricity and generate 25% of CO2 emissions. A potential transition to green buildings could help reduce 50% of energy consumption, 40% of water consumption and 39% of CO2 emissions. Housing developers are expected to play an important role in closing the housing gap in the LAC region by focusing on green housing.