IDB Unveils Green Loans Plan to Unlock Climate Finance

The Inter-American Development Bank (IDB) launched a groundbreaking initiative on June 16, 2025, aimed at mobilizing trillions for renewable energy projects across the developing world, with a particular focus on Latin America. The model involves repackaging existing low-risk green loans into creditworthy packages backed by development bank guarantees, making them attractive to institutional investors. With an initial pool of US $500 million to $1 billion, the program is poised to catalyze tens of billions in private capital toward projects like large-scale solar, wind, battery storage, and electrified transport. This “virtuous circle” approach aims to scale investments while addressing chronic financing gaps in emerging economies.