MercoPress. South Atlantic News Agency

Former CAF, OAS agree on climate action and biodiversity agenda

CAF's goal is to become the Green Bank of Latin America and the Caribbean, Dìaz-Granados explained

The Organization of American States (OAS) and the Development Bank of Latin America -formerly known as Corporación Andina de Fomento (CAF)- have signed a memorandum of understanding whereby both institutions pledged to tackle environmental and climate issues together, it was announced.

CAF is known for its commitment to promoting sustainable development and regional integration in Latin America through the financing of public and private projects, the provision of technical cooperation and other services regarding biodiversity.

As per the new alliance, the guidelines for working together to reduce greenhouse gas emissions and invest in a low-carbon global economy were outlined, with special emphasis on the countries and regions most vulnerable to the effects of climate change, such as the Caribbean.

Both institutions will promote new ways for countries and institutions in the region to accelerate implementation and improve the ambition of the climate, biodiversity and sustainable development agendas to last over time and stimulate economic growth and improve the livelihoods of all people.

“This alliance between CAF and the OAS, which strengthens the relationship that has united us since the signing of the cooperation agreement between the two institutions in 1995, allows us to coordinate efforts, resources and institutional capacities to support a common desire,” said CAF Executive President Sergio Diaz-Granados, who highlighted the new understanding had been reached “to achieve economic and social reactivation based on green growth” which must also be “low-carbon, climate-resilient and have a positive impact on nature, our region's most precious asset.”

Diaz-Granados added that CAF's goal was to become the Green Bank of Latin America and the Caribbean, and to achieve it in the next 5 years it will allocate US$ 25 billion in funding to various projects.

OAS Secretary-General Luis Almagro highlighted that “the Framework Agreement we sign today is another step in strengthening the fruitful relations we have between the OAS and CAF, an institution with which we share common values such as the defense of democracy, human rights and sustainable development.”

CAF and OAS will work together to promote access to innovative financial instruments to help countries meet their environmental and climate commitments through the development of climate and environmental policies and strategies, as well as an institutional capacity building while supporting programs and projects with environmental and climate co-benefits and the mobilization of international resources for green finance. They will also support the development of better policies and help the private sector adopt sustainable consumption and production models, among others.