IDB May Loan Up to $1bn to Climate Projects
The Inter-American Development Bank may raise this year its private sector financing for “climate-friendly” projects to “up to $1 billion,” said Patrick Doyle, senior climate and energy officer of the structured and corporate finance department. In 2011 it approved about $750 million in loans for projects worth $4.1 billion. This comes after the bank’s announcement last year that a quarter of its future lending will go towards projects that combat climate change, following a $70 billion capital raise.
Of about $280 billion invested worldwide in clean energy last year, Latin America and the Caribbean saw less than 5 percent of the total, according to the Climate- Scope 2012 report. Doyle said the bank is working with public and private sectors to ensure that governments have the “right policies” to attract investment and put out “bankable” tenders.
Q: How has the capital boost affected your financing in renewables?
A: With this capital increase, the IDB is now in a position to approve about $12 billion per year on average for development projects [private and public sector]. Last year IDB lent about $1.5 billion to private sector projects, and this figure is projected to grow in the years ahead, up to as much as $2.5 billion. About half of the funding went to loans for climate-friendly projects last year. In terms of private sector financing for clean energy, we approved $750 million in loans to finance projects worth $4.1 billion last year… Read more here>>