Ilan Goldfajn, the president of the Inter-American Development Bank (IDB), and Kristalina Georgieva, the managing director of the International Monetary Fund (IMF), recently announced their commitment to enhance collaboration. This partnership aims to support the collective efforts of their member countries in Latin America and the Caribbean to promote sustainable and inclusive growth while tackling the structural challenges posed by climate change.
To achieve their objectives, IDB and IMF personnel will focus on two primary areas: general coordination and climate financing. In terms of improved general coordination, technical staff from both institutions will deepen their collaboration on monitoring macroeconomic policies, IMF agreements—particularly the Resilience and Sustainability Trust (RST)—IDB loan operations, including investment loans, and capacity building initiatives.
The collaboration on climate financing will concentrate on identifying policies that support the members’ climate goals within the RST framework. It will involve developing capabilities to assist in RST implementation and creating programmatic approaches to mobilize climate finance.
By strengthening their collaboration in these areas, both institutions aim to better support the design of economic policies and reform programs in member countries. They will also work on more effectively mobilizing climate finance. This collaboration extends to national platforms to attract additional funding for climate action.
Goldfajn expressed that this enhanced partnership with the IMF is a significant step toward enabling member countries to respond more effectively to climate change, taking advantage of the opportunities that the green transition presents while fostering sustainable growth.
Georgieva emphasized their commitment to improving collaboration with the IDB to deliver tangible results for individuals, businesses, and institutions throughout Latin America and the Caribbean.
Looking ahead, IDB and IMF personnel will continue to collaborate on the design and implementation of policies and programs necessary for the structural transformation needed by countries in the region to achieve their strategic climate goals. This includes exploring ways to advance green fiscal policies and enhance financing alternatives for climate resilience investments through various financial tools.
For more insights on climate financing and sustainable development, you can explore resources at World Bank or UN Environment Programme.
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