IDB Supports Energy Efficiency and Renewable Energy Projects in Colombia
14 June 2011: The Inter-American Development Bank (IDB) has approved a $90 million facility to support on-lending to energy efficiency, cleaner production and renewable energy projects through Colombian financial institutions.
The first use of the facility is a transaction with Bancolombia in collaboration with the International Finance Corporation (IFC), a member of the World Bank group, and the Clean Technology Fund (CTF), one of the two Climate Investment Funds. The approved project with Bancolombia will support its loans to small and medium enterprises that seek to adhere to higher environmental standards. The risk sharing mechanism between Bancolombia, IDB and IFC will support a portfolio of up to COP200,000.
Further technical assistance to Bancolombia will support internal capacity building, energy efficiency audits and knowledge creation. Through its collaboration with IFC, CTF and Colombian banks, IDB aims to extend financial access to "green" projects that would otherwise face limited or unaffordable financing options.
Daniela Carrera-Marquis, IDB's Chief of the Financial Markets Division, explained that “This Facility represents a cutting edge approach by the IDB to respond to climate change with market-ready financial products." [IDB Press Release]