Development banks group boosts climate change financing

0 Comment(s)Print E-mail Xinhua, December 12, 2014
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The International Development Finance Club (IDFC) announced Thursday it will increase financing in 2015 to promote carbon dioxide (CO2) reduction and social inclusion.

Enrique Garcia, executive president of the CAF (Development Bank of Latin America) and IDFC representative, told a high-level meeting at the 20th Conference of Parties (COP20) to the United Nations Framework Convention on Climate Change in Lima, Peru, the development banks will earmark 100 billion U.S. dollars to the cause.

The IDFC, which brings together 23 leading international, national and sub-regional development banks around the world, most of them in developing countries, granted some 99 billion dollars in financing last year for projects to combat climate change.

"The IDFC has become the world's largest source of public- sector green financing," said Garcia.

The commitment by the banks helps promote innovative products and actions that meet the challenge of fighting the so-called greenhouse gases that add to global warming, said Garcia.

Financing, Garcia explained, is provided through various mechanisms, including issuing loans or green bonds, among others.

"Governments should not limit their participation (in the climate change fight) to political or regulatory measures," said Garcia. "They should also take part by creating mechanisms and incentives that reduce risk and encourage investment.

"Public-sector money, which we know is scarce, must be invested in spurring private investment," he added.

The COP20 began on Dec. 1 and concludes Friday.

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