COP26: EIB, ALIDE and BDMG debated on the importance of International Financial Cooperation for Climate Action

  • At the end of the event, the European Investment Bank (EIB) and the European Commission signed a Contribution Agreement for the benefit of COFIDE, Peru’s development bank.

November 10, 2021- In the framework of COP26, the European Investment Bank (EIB), the Latin American Association of Development Finance Institutions (ALIDE) and the Banco de Desenvolvimento de Minas Gerais (BDMG) discussed the relevance of international financial cooperation for the implementation of climate action projects.

In particular, this event analyzed how the joint action of the EIB and Latin American development banks allowed to learn important lessons about international financial and technical cooperation process.

With special interest, the main success factors in the implementation of resources from international sources of financing and cooperation for climate action were discussed. Other topics to discuss were their contribution to the green transformation of financial institutions and the development of sustainable financing ecosystems that facilitate the leveraging of resources for clean investments together with the private sector.

The session included a message from EIB President Werner Hoyer, who highlighted the long history of EIB financing in the region, especially in support of climate action projects.

EIB Vice-President Ricardo Mourinho stressed that the EIB is committed to financing projects in Latin America that facilitate the region’s sustainable climate transition. He added that “no one should be left behind, and this is of the utmost importance for the European Union” and the EIB as its bank.

Mourinho also indicated that for his institution the most important thing is impact, beyond using the money. “The people we protect, the infrastructures that become resilient, the jobs that are created, all of that is very important,” said the EIB representative.

The director for Latin America, the Caribbean and Relations with Overseas Countries and Territories of the European Commission’s Directorate General for International Partnerships (INTPA), Jolita Butkeviciene, stressed the importance of working together and forming partnerships to achieve the SDGs during the discussion of the challenges and opportunities of cooperation for the allocation of resources for the benefit of sustainability and in support of the Sustainable Development Goals (SDGs).

“The partnership between COFIDE, the EIB and the European Commission, and what this project represents, will allow us to support Peru on its way to achieving the Sustainable Development Goals (SDGs). I´m sure that this project is just the beginning of a very productive partnership that will stimulate the participation of the private sector,” commented Butkeviciene, referring to the Contribution Agreement for a line of credit for the benefit of the Peruvian development bank.

The experience of the BDMG, which unlike COFIDE, has the implementation of its loan granted by the European Investment Bank at a different stage, was also valued.

In this regard, the president of the BDMG, Sergio Gusmao highlighted the achievements and benefits obtained with the support of the EIB.”It has been a line that helped us from the point of view of countercyclical programs and at the same time pushed us to solve our climate finance problems,” said Gusmao, who considered the practice of cooperation between development banks at global and local level an essential vector to accelerate investments that will lead to a sustainable economic transition, in line with global agendas and the challenges discussed at COP26.

For his part, the president of COFIDE – Development Bank of Peru, Carlos Linares, shared the importance of the collaboration with the EIB, and considered it the return of his institution to cooperation with international development banks.

“This collaboration is pretty important, not only for being the first one we do with the EIB, but for the impact it will have both in the management of the corporation and in the achievement of the achievements as a country”, said Linares, who also emphasized how relevant the technical cooperation that COFIDE would have to contribute to its goal of being recognized as a green bank will be.

In the final part of the event, the European Commission and the EIB signed a Grant Contribution Agreement for the EU-Latin America Investment Facility (LAIF) in support of the credit line that will benefit COFIDE (Peru).

The Ambassador of the European Union in Peru, Gaspar Frontini, reaffirmed his commitment to cooperation for the benefit of COFIDE and commented that energy efficiency, circular economy and sustainable economy are the focus of this cooperation.

It should be noted that working with networks such as the Latin American Association of Financial Institutions for Development (ALIDE) has contributed to promoting international financial cooperation. It has also made it possible to share lessons and experiences in order to enhance their value, so that they can become an important reference for the mobilization of resources for development and climate action at the international level.

About the EIB

The European Investment Bank (EIB) is the long-term financing institution of the European Union whose shareholders are its Member States. The EIB provides long-term financing for sound investment to help achieve EU policy objectives. www.eib.org

About BDMG

BDMG is a financial institution that integrates the economic system of Minas Gerais, the 3rd state with the highest GDP in Brazil. Founded in 1962 and with about 29 thousand clients in its portfolio, the bank offers credit to private companies of all sizes, operating also in municipal financing and project structuring. BDMG’s strategy is connected to the Sustainable Development Goals (SDGs), in the continuous search to generate a positive socioeconomic impact. In this regard, actions to encourage the green economy, small businesses, innovation, women’s entrepreneurship, urban infrastructure, among others, stand out.

About ALIDE

ALIDE is the community of financial institutions that generates banking solutions for the development of Latin America and the Caribbean. Founded in 1968, its main objective is to contribute to the economic and social development of the region, through the good practices in development financing that it promotes among its associates, about 90 institutions with a presence in more than 20 Latin American countries and other regions of the world.

Contact

Andrea Villafranca
Comunication Unit
Telephone: +511-203-5520 |: Ext: 227
comunicaciones@alide.org, comunicaciones2@alide.org
www.alide.org