Inter-American Development Bank to Invest $20M in Renewables

Inter-American Development Bank to Invest $20M in Renewables

The Sustainable Energy and Climate Change Fund announced this month by the bank will direct $20 million to finance renewable energy, energy efficiency and other climate-related projects in Latin America and the Caribbean.

The fund is aimed to not only increase investment in renewables and sustainable energy projects, but also to develop policies and programs to mitigate the effects of climate change and to prepare responses for disasters that may arise from climate change.

"Climate change is a development issue," IDB Environmental Safeguards Unit Chief Janine Ferretti said in a statement. "The fund will help countries in Latin America and the Caribbean address the problem of climate change and its impacts in important economic and social areas like agriculture, water, health, and biodiversity. It will also help improve access to affordable and reliable sources of energy."

The money in the fund will be available to government agencies as well as public and private corporations, NGOs and academic researchers. It is intended to help the region prepare for effects of global warming, as well as guide Latin America's development in more sustainable directions.

In recent months, the IADB has made a series of alternative energy announcements. In mid-August, the group signed on Pepco Energy Services to offset the carbon emissions generated by its Washington, D.C., headquarters by more than 30 percent through the purchase of renewable energy credits. And in July, the Bank announced a $120 million package of financing for a biofuels refinery in Brazil.