Development banks have been critical partners for Latin America as the region seeks to address a staggering infrastructure gap. The World Bank, the Inter-American Development Bank, CAF-Development Bank of Latin America, China Development Bank, and others have provided many billions in finance for much-needed transportation, energy, water, sanitation, and other projects throughout the region in recent years.
Much more will be required of Latin America’s top financiers as climate change threatens regional infrastructure and livelihoods, however. Climate mitigation projects are expected to cost the region $110 billion annually, as roads, facilities, and services are affected by extreme weather and rising seas. Latin America’s top financial partners will be called upon to cover these costs, as well as to promote increasingly sustainable lending practices. In their newest report, Fei Yuan and Kevin Gallagher of Boston University’s Global Economic Governance Initiative’s (GEGI) compare development bank commitments to “green” finance in Latin America. Although some institutions have made great strides in promoting sustainable development in Latin America, much more will need to be done to scale up green finance and to adequately safeguard both green and conventional development projects.
Director, Global Economic Governance Initiative, Boston University
Research Fellow, Global Economic Governance Initiative, Boston University
Nonresident Senior Fellow, Brookings Institution and former Executive Director
at the World Bank and Inter-American Development Bank
Director, China and Latin America Program, Inter-American Dialogue