Latin America and the Caribbean Facility for Greening Public Development Banks and the Financial Sector

implementation

The general objective of this facility is to foster the greening of the public financial sector and the alignment of it to the PA and NDCs. The facility will have three specific objectives that complement and leverage each other: (i) support and advise PDBs and their network of LFIs to align their strategy and business model to the goals of the PA and create a public policy environment conducive for greening the public financial sector; (ii) implement an innovative Performance-Based Payments (PBP) mechanism, that incentivizes PDBs financially to: (a) maintain and implement institutional enhancements; (b) achieve ambitious GHG reductions at the institutional and beneficiary level; and (c) the increasing PA-aligned share of the PDBs portfolio; and (iii) support in-depth feasibility analysis, structuring and piloting of innovative financial structures aimed at enhancing PDB's lending capacity and the mobilization of private sector capital for ambitious climate investments.