IDB to pump millions into new initiative to promote innovation in climate and nature
WASHINGTON (CMC) – The Inter- American Development Bank (IDB) says it has launched an “ambitious” programme aimed at addressing climate change and environmental sustainability while accelerating technological climate innovation in Latin America and the Caribbean (LAC).
IDB said the Green Entrepreneurial Engine approach, launched by its innovative laboratory, IDB Lab, also seeks to create value through natural capital and nature-based solutions in the region.
IDB Las has received a financial commitment of US$46 million from 26 allies, including multi-donor funds, multilateral organisations, public cooperation agencies, corporations, private foundations and philanthropy, among others.
“This comprehensive IDB Lab approach will create early-stage investment opportunities, reduce the risk of investment in new climate and nature-oriented markets and support the consolidation of local and regional green innovation ecosystems that amplify and accelerate impact.
“The committed sum will allow financing for emerging companies and bio-businesses in early stages through non-refundable contributions and investments in seed capital, among other methods,” the IDB said.
It said that the Green Entrepreneurial Engine addresses climate change and environmental sustainability with defined lines of action to tackle significant challenges such as mitigation, adaptation, sustainable use of water and marine resources, transition to a circular economy, prevention and control of pollution, and protecting and restoring biodiversity and ecosystems.
“To do this, it will undertake the enabling factors of the green entrepreneurship ecosystem incorporating innovation, diversity and sustainability. It will also undertake specific programs to consolidate bio-businesses and the development of startups in climate matters, fully in alignment with the Paris Agreement and the post-2020 Global Biodiversity Framework,” the IDB said.
The IDB added that this approach reinforces IDB Lab’s commitment to gender and diversity goals, promoting the effective inclusion of entrepreneurial women, Afro-descendants, and indigenous communities.
At the same time, the IDB Lab chief executive officer, Irene Arias, said, “The Green Entrepreneurial Engine approach that we adopt at IDB Lab represents a coordinated effort to mobilise resources, knowledge and connections to combat climate change and prevent biodiversity loss in our region. This approach enables us to move towards both a green and digital transition for Latin America and the Caribbean.”
The Green Entrepreneurial Engine project builds upon more than a decade of experience from IDB Lab in facilitating and leading environmental projects that have positively impacted the planet and people’s lives.