THE Inter-American Development Bank (IDB) says it committed US$2.8 billion for projects that address climate change, sustainable energy and environmental sustainability in Latin America and the Caribbean last year.

According to its annual Sustainability Report, a detailed overview of its progress in investing in and safeguarding sustainability in Latin America and the Caribbean, the figure represents 20 per cent of the bank’s overall lending last year.

The report, issued on the side of the IDB´s Annual Meeting in Brazil, notes that the figure puts the IDB on target to meet its goal of 25 per cent by 2015.

The report provides data and context on the IDB’s efforts to invest in and safeguard sustainability by integrating environmental and social considerations throughout its project portfolio.

For example, of projects with high environmental and social risks, 87 per cent rated satisfactory in the implementation of safeguard measures in 2013, exceeding the IDB’s goal of 85 per cent by 2015.

Additionally, the report examines the challenges of the rapid urbanisation of the region and the bank’s strategies to address them, including a newly approved Infrastructure Strategy and Advances in its Emerging and Sustainable Cities Initiative.

“A sustainable and efficient infrastructure, the buildings, roads and services necessary for a modern society to operate smoothly, is essential for improving the quality of life for people in the region,” said the IDB, adding that the Latin America and the Caribbean region faces major challenges in protecting its environment and tackling climate change.

The IDB said demand for electricity is expected to double by 2030, and annual damages from natural disasters total US$3.6 billion.

The IDB said the new Infrastructure Strategy balances environmental, social and fiscal concerns, adding that new guidance on agriculture and natural resources, urban development and housing is consistent with existing bank strategies including the Climate Change and Clean Energy Strategy.

In the past year, more than one million people have gained access to low-carbon forms of public transportation, the IDB said. Sixty per cent of the power generated by IDB projects was from low carbon sources.