The Inter-American Development Bank (IDB) and the World Bank this week announced new guidelines for Amazonia Bonds, a capital markets instrument aimed at financing projects that benefit biodiversity, local communities, and zero-deforestation initiatives across the Amazon.
The guidelines aim to support countries, development banks, and the private sector in ramping up financing for projects aligned with the Amazon region’s specific development needs, according to a press release on Tuesday.
They outline project selection criteria, methods for assessing environmental and social risks, and metrics for tracking the impact of the bonds.
Aligned with global standards for sustainable bonds, such as the International Capital Market Association (ICMA) Principles for Green, Social, and Sustainability Bonds, Amazonia Bonds aim to create a standardised sub-label that can attract investment for sustainable development in the region, the press release said.
The guidelines were developed with input from ministries, banks, corporations, and civil society organisations and will undergo further consultation with Indigenous Peoples, Afro-descendants, and traditional communities.
“We reached a significant milestone today, and we are committed to an ample dialogue to receive more contributions to the continuous improvement of the guidelines,” said Jordan Schwartz, executive vice president at IDB.
“This regional public good will allow us to scale finance in Amazonia, aligned with its development needs. It must serve all the Amazonian countries, and the role of the Indigenous peoples and local communities is critical on this front,” Schwartz added.
“Innovative financing is essential for the preservation and sustainable development of the Amazon forest,” said Carlos Felipe Jaramillo, World Bank vice president for Latin America and the Caribbean Region. “By leveraging new financial instruments and partnerships, we can mobilise the necessary resources to protect this vital ecosystem and support the communities that depend on it.”
A day after the IDB-World Bank announcement, a group of over 20 organisations launched a coalition to promote bioeconomy across the Amazon region, looking at the biodiversity credit market as a possible means to scale financing.
The Pan-Amazon Network for Bioeconomy, led by the World Resources Institute and Conservation International, was announced during the ongoing COP16 UN biodiversity summit in Cali, Colombia, reflecting the increasing interest in the topic among investors and policymakers, particularly during Brazil’s G20 presidency this year.
By Dimana Doneva – dimana@carbon-pulse.com
