USAID Accelerates Local weather Finance | Press Launch

In the present day at COP27, the U.S. Company for Worldwide Growth (USAID) introduced a set of applications and targets to extend non-public funding in local weather options and make progress on its COP26 dedication to mobilize $150 billion in local weather finance by 2030. USAID is specializing in funding probably the most pressing wants in accomplice international locations by way of increasing entry to local weather finance and rising the variety of monetary establishments making local weather investments. Concrete deliverables embody:

USAID introduced a brand new Sustainable Banking Alliance to extend the capability of banks based mostly in USAID accomplice international locations to entry local weather finance. This system will launch with pilots in Colombia and Rwanda, with an preliminary price range of simply over $1 million. USAID will accomplice with the native banking associations in addition to worldwide local weather finance organizations to construct native capability in local weather threat reporting, carbon accounting throughout monetary portfolios, and offering coaching on local weather finance lending, akin to resilient agriculture and inexperienced bonds. 

USAID and the Millennium Problem Company introduced a brand new partnership to broaden our work in supporting the usage of inexperienced finance mechanisms throughout the globe. The companies’ joint efforts will goal an preliminary small group of nations. The work can then be scaled and replicated with assist from growth finance establishments just like the U.S. Growth Finance Company. USAID will present preliminary assist for the event of inexperienced finance in as much as 5 international locations by way of public-private partnerships targeted on bettering the capability and enabling situations that speed up the usage of inexperienced finance mechanisms, such because the issuance of inexperienced and blue bonds. 

USAID introduced the launch of the Local weather Finance Investor Community (CFIN) to facilitate quicker engagement with the non-public sector. The CFIN will deliver collectively a various group of local weather finance actors to extra simply accomplice with USAID to speed up funding in local weather options by way of community constructing, partnership facilitation, and catalytic grants. USAID urges non-public sector companions to affix the Community as we speak by visiting our partnership portal at climatelinks.org/initiatives/CFDA