EU Announces €45 Billion Investment In Caribbean, Latin America

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News Americas, LONDON, England, Weds. July 19, 2023: In a significant move to strengthen ties with Caribbean and Latin American leader, EU leaders in Brussels have unveiled a €45bn investment package aimed at fostering sustainable development and accelerating the transition to clean energy.

The investment announcement came at the EU-CELAC summit, the first of its kind since 2015,which aimed to bring the EU closer to Latin American and Caribbean countries. Disagreements over how to refer to the war in Ukraine in the final text soured negotiations but the investment encompasses critical projects in various sectors, including the extraction of essential minerals, electrification of bus fleets, healthcare advancements, telecommunications, and conservation efforts for the Amazon rainforest in Brazil.

Emphasizing the importance of responsible investment, European Commission President Ursula von der Leyen stressed the need for high environmental and social standards.

While discussions surrounding a trade deal with Mercosur yielded minimal progress, EU leaders expressed their commitment to concluding the agreement this year. The EU’s cautious approach to ratifying the trade deal is rooted in concerns over protecting the Amazon rainforest and upholding environmental standards. By fostering trade and collaboration, the EU aims to advance its climate goals, with a particular focus on leveraging Latin America’s potential in hydrogen production and critical raw materials essential for the energy transition.

This investment endeavor signifies a strategic shift in EU rhetoric, promoting sustainable practices and local capacity-building rather than mere raw material extraction. The EU’s strengthened ties with Caribbean and Latin America serves to diversify supply chains, reduce reliance on single sources, and facilitate a mutually beneficial partnership for economic growth and environmental stewardship.

IDB Partners To Mobilize Funds for Renewable Energy Investments

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News Americas, NEW YORK, NY, Weds. July 19, 2023: The Inter-American Development Bank (IDB) has joined forces with the International Renewable Energy Agency (IRENA) by signing an agreement to become a partner of the Energy Transition Accelerator Financing (ETAF) platform. As part of its commitment, the IDB plans to allocate up to USD 100 million to co-finance renewable energy projects and energy transition technologies in the Latin America and Caribbean region.

This collaboration between the IDB and IRENA is set to have a profound impact on the region by catalyzing the energy transition, advancing progress on energy access and security, and driving significant changes in the renewable energy landscape.

IRENA Director-General Francesco La Camera and IDB CEO Ilan Goldfajn expressed their enthusiasm for the partnership. Director-General La Camera emphasized the urgency for action on the energy transition as the climate tipping point draws near, and highlighted the IDB’s invaluable expertise and substantial resources that will contribute to progress in Latin America and the Caribbean.

IDB President, Ilan Goldfajn, also spoke about the IDB’s increased climate ambition and the importance of mobilizing more capital for low-carbon technologies. By joining IRENA’s important financing platform, the IDB takes a significant step towards supporting the energy transition goals of Latin America and the Caribbean. This collaboration positions the region as a key player in addressing the global challenge of climate change.

The ETAF platform, initially aiming to mobilize USD 1 billion by 2030, has already surpassed its target with the involvement of new partners like the IDB. The current capital commitment stands at an impressive USD 1.25 billion, exceeding the platform’s initial goal. Leveraging its global reach and expertise in the energy transition, IRENA is actively developing a pipeline of projects in emerging markets across Latin America and the Caribbean. These projects will be presented to interested ETAF partners, including the IDB, for potential funding and support.