CALI, October 29, 2024 - The Inter-American Development Bank (IDB) and the World Bank presented today the core elements of the guidelines for capital markets instruments called Amazonia Bonds.
These bonds will finance activities that have a positive impact on local communities, biodiversity, and zero deforestation efforts in the Amazon region. The guidelines outline project selection and evaluation criteria, measures to mitigate environmental and social risks, and indicators to report expected impact.
Built on existing global market standards that underpin the sustainable bond markets¡ªICMA Principles for Green, Social and Sustainability bonds¡ª the guidelines will enable the issuance of Amazonia Bonds as a standardized and credible sub-label.
The guidelines benefited from consultation with key stakeholders, including ministries of finance and planning, public and private banks, corporates, and Civil Society Organizations. A series of dialogues with Indigenous Peoples, Afro-descendants and traditional communities will be held over the next few months to ensure the guidelines are fit-for-purpose.
¡°We reached a significant milestone today, and we are committed to an ample dialogue to receive more contributions to the continuous improvement of the guidelines, said Jordan Schwartz, IDB Executive Vice President. ¡°This regional public good will allow us to scale finance in Amazonia, aligned with its development needs. It must serve all the Amazonian countries, and the role of the Indigenous Peoples and local communities is critical on this front,¡± Shwartz added.
¡°Innovative financing is essential for the preservation and sustainable development of the Amazon forest,¡± said Carlos Felipe Jarmillo, World Bank Vicepresident for Latin America and the Caribbean Region. ¡°By leveraging new financial instruments and partnerships, we can mobilize the necessary resources to protect this vital ecosystem and support the communities that depend on it. We are very pleased to work with the IDB to develop the Amazonia Bond Investment Guidelines which can scale up financing for positive environmental and social impact in the region.¡±
Sustainable investments are critical to prevent the Amazonia tipping point and its impact on local economies and peoples. The Guidelines are expected to help countries, national development banks, and the private sector scale up financing, prioritizing projects and investments consistent with the Amazon region's development needs.
About Amazonia Forever
is the IDB¡¯s holistic umbrella program that aims at protecting biodiversity and accelerating sustainable development in three lines of action: expanding funding, boosting knowledge exchange, and facilitating regional coordination among the eight Amazonian countries.
The program is based on five pillars: (i) Combating deforestation and strengthening environmental control and security in the context of national governments; (ii) Bioeconomy and creative economy, promoting alternative and sustainable economic activities; (iii) People, aiming at adequate access to quality education, healthcare, and employment; (iv) Sustainable cities and infrastructure and connectivity; and (v) Sustainable, low-carbon agriculture, livestock and forestry. In addition, the program focuses on promoting the inclusion of women, indigenous peoples, people of African descent and local communities; climate and forest conservation; and strengthening institutional capacities and the rule of law.
About Amazonia Viva
Amazonia Viva is the World Bank Group initiative to strengthen efforts and collaboration to safeguard natural assets for a healthy forest biome, foster nature-smart and inclusive economic opportunities and improve living standards of its population. As a part of the World Bank Global Challenge Program on Forests for Development, Climate, and Biodiversity, Amazonia Viva will promote innovative solutions to deepen and broaden the support from the World Bank Group including the International Finance Corporation and Multilateral Investment Guarantee Agency, working in partnership with the Inter-American Development Bank Group under the umbrella of the Amazonia Forever program.
About the World Bank
ľ¹ÏÓ°Ôº Group offers financing, knowledge, and expertise to help create a world free of poverty on a livable planet. In more than 100 countries, the Bank Group provides solutions that improve lives by creating jobs, strengthening economies, and confronting the most urgent global development challenges. ľ¹ÏÓ°Ôº Group consists of the World Bank, including the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). For more information, please visit www.worldbank.org, , and .
About the IDB
The Inter-American Development Bank (IDB) is devoted to improving lives across Latin America and the Caribbean. Founded in 1959, the IDB works with the region¡¯s public sector to design and enable impactful, innovative solutions for sustainable and inclusive development. Leveraging financing, technical expertise and knowledge, it promotes growth and well-being in 26 countries. Visit our website .
Website: www.worldbank.org/caribbean
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