DUBAI – The Public Development Banks of the Green Coalition aim to mobilize resources between $10 billion and $20 billion by creating a sustainable development platform. These resources will be directed to the Amazon development agenda 2024-2030, with the collaboration of the Green Coalition’s international partners, to support the financing of sustainable investments in the Amazon region.
The announcement was made during COP28 in Dubai, where the Green Coalition also unveiled its two-year action plan, the results of which will be presented at COP30 in Belem, Brazil, the city where this initiative was born.
Based on principles of collaboration and innovation, the Green Coalition will focus on designing financial solutions and providing technical support, to promote the scalability of environmentally and socially responsible businesses and projects in the Amazon.
The action plan articulates a comprehensive strategy around four fundamental lines of work. First, the Green Coalition will identify the needs and will integrate local development perspectives to support new opportunities for financing sustainable development projects. Secondly, the plan aims to develop common investment and financing frameworks that will be specifically tailored to the conservation of the Amazon biodiversity and the welfare of local communities, understanding the unique needs of the region. Third, the plan includes establishing an innovation laboratory, focusing on the joint design of sourcing region-specific financial instruments and technical assistance. Finally, the strategy encompasses the mobilization of concessional resources to implement those initiatives through the Green Coalition’s public development banks.
In addition to resource mobilization and technical assistance, the Green Coalition will seek to reduce the financing barriers through loans and financing instruments for the Amazon, leveraging initiatives led by its members, the public development banks of the Amazon countries in Latin America, including the Inter-American Development Bank (IDB) and the Brazilian Development Bank (BNDES), proponents of the Green Coalition, as well as international partners such as the World Bank and CAF.
"We are focusing our efforts on the promotion and integration of sustainable economic activities that offer economic alternatives to its citizens in order to protect the health of the Amazon’s biome for the benefit of present and future generations. This Green Coalition initiative is aligned with the goals of IDB’s umbrella Amazon Forever holistic program. In this regard, we are prioritizing the companies and initiatives that demonstrate social, environmental, and economic sustainability to promote the preservation and recovery of natural resources of the Amazon," said Ilan Goldfajn, President of the IDB, emphasizing that the Bank currently serves as the technical secretariat for the initiative.
“The BNDES recognizes the value that the Coalition's multilateral cooperation contribute for achieving solutions that allow the Amazon Forest to remain standing, productive and promoting improved income and human development in the region, establishing forest restauration as a priority for carbon sequestration on a large scale, an effective and urgent measure to preserve and strengthen the largest tropical forest on the planet and the most strategic biome for the challenge of the climate emergency. Created in Belém in August, we now see the Green Coalition arriving at COP28 in December in its operational stage and with delivery targets defined for the next two years until COP30, its return to Belém. Among priority challenges, BNDES identifies, based on its recognized experience in the Amazon, land regularization, logistics, access to energy and internet, security, sanitation, the need to develop the business ecosystem and the lack of rural technical assistance, as well as risk mitigation instruments to attract investment,” as mentioned by Aloizio Mercadante, President of BNDES who also assumes the Presidency of the Green Coalition Steering Committee.
“The sustainable development of the Amazon region is a key focus area for the World Bank, with the goal of helping people pursue better livelihoods on a livable planet. To achieve this goal, we need to build on partnerships like the Green Coalition. Working together with other development Banks allows us to leverage significant resources collectively, promote innovation, and boost technical cooperation that benefits the Amazon region and its people,” said Carlos Felipe Jaramillo, World Bank Vice President for the Latin American and Caribbean Region.
The Amazon region is critical to ecosystems worldwide, providing 40% of Latin America's fresh water and regulating nutrient and hydrological cycles for the South American continent. Given the growing scientific consensus that the Amazon Basin is reaching an ecological “tipping point,” there is an urgent need to take measures to protect the biome while considering the social and economic development of the region.
About the Green Coalition
Formed after the Amazon Summit, the Green Coalition unites 20 development banks in a strategic alliance to catalyze sustainable economic development within the Amazon region. Focused on social welfare and sustainability, the Green Coalition is dedicated to fostering businesses and initiatives that embody socio-environmental responsibility and sustainability.
With a vision deeply rooted in protecting global biodiversity and climate, the Green Coalition aims to mitigate poverty, hunger, and social disparities, especially within indigenous and traditional communities. The Green Coalition's approach centers on merging financial innovation and technical support to cultivate growth that respects and rejuvenates the Amazon, pursuing a future where economic prosperity and ecological integrity coexist, benefiting both local and global communities.
BNDES is the Brazilian government's main long-term financing and investment instrument to promote Brazilian social and economic development. BNDES support takes into account the country's sustainable development through the generation of employment, income and social inclusion. BNDES is renowned for its role in promoting green and social projects, such as being the manager of the Amazon Fund and the world's top financier of renewable energy. Encouraging innovation and regional development is one of BNDES's priorities. More information: https://ri.bndes.gov.br/en/
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research projects and provides policy advice, technical assistance and training to public- and private-sector clients throughout the region. Take our virtual tour.
About the World Bank
The World Bank has a bold vision: to create a world free of poverty on a livable planet. The World Bank provides financing, advice, and innovative solutions that improve lives by creating jobs, strengthening economic growth, and confronting the most urgent global development challenges. The World Bank is one of the largest sources of funding and knowledge for developing countries. It consists of the International Bank for Reconstruction and Development (IBRD), a global development cooperative owned by 189 member countries, and the International Development Association (IDA), which provides grants and zero- or low-interest loans to fight extreme poverty in the world’s 75 poorest and most vulnerable countries. For more information, please visit www.worldbank.org