In December 2020 the regional readiness project "Enhancing Climate Finance and Investment in LAC Banking Sector" was approved, presented to the Green Climate Fund (GCF) by a group of 6 countries: Argentina, Cuba, Guatemala, Paraguay, the Dominican Republic, and Uruguay. who decided to collaborate with the Latin American Association of Financial Institutions for Development (ALIDE), delivery partner of the project.
The proposal aims to convert individual bank efforts into coordinated and regional financial sector initiatives and, in this way, increase the number of GCF-accredited entities and projects in line with the countries' climate policies and frameworks.
According to the Readiness Programs, ALIDE in its capacity as delivery partner is part of the Project Steering Committee together with the NDAs of the participating countries. This instance will serve as the highest decision-making body of the project.
For the implementation of the project, a Project Coordination Unit (PCU) was established led by a Project Manager (Project Manager) with the support of an Assistant Project Manager (Assistant Project Manager).
For operational purposes, another line of communication is through the national consultants of each country who will act as focal points for the project. The national consultant is key to ensure timely coordination and communication, and to ensure that the national priorities defined by the NDAs in the country's strategic framework are being developed in the different project activities.
For project management purposes, Guatemala is the lead country for the project.
Lines of action
The objective of the project is to generate evidence on the opportunities and challenges to implement innovative solutions for climate finance, focusing on 3 main lines of action:
Emphasize on supporting potential direct access entities to assess their portfolio on climate change and meet the standards of the GCF accreditation process, while mobilizing interest from national sustainable financing platforms to engage with the GCF and the climate finance opportunities.
Streamline the participation of financial institutions in the implementation processes of the NDCs and the Country Program, through the analysis of the situation and recommendations for the prioritization of the portfolio at the regional / national level, pilot experiences and presentation of concept notes to the GCF .
Promote joint investments and strategic alliances between FIs and AEs, testing the relevance of special vehicle purposes, public private partnerships (PPPs), green bonds and other innovative financial mechanisms for climate investment at scale in Latin America.