Global Green Bond Initiative strengthened by a

new strategic partnership to foster green capital

markets
6 September 2023

The coalition of development finance institutions and multilateral organisations making up the Global Green
Bond Initiative (the European Investment Bank (EIB), the European Bank for Reconstruction and Development
(EBRD), Italy’s Cassa Depositi e Prestiti, the Spanish Agency for International Development Cooperation
(AECID), Germany’s KfW development bank, PROPARCO of the AFD Group, acting as a consortium of
European development finance institutions and the Green Climate Fund (GCF)), today launched a strategic
partnership with the Inter-American Development Bank (IDB) and IDB Invest to cooperate on technical
assistance for promoting green bond markets in Latin America and the Caribbean, at an event attended by
representatives of the European Commission. The declaration was signed in Cartagena, Colombia, at the
Finance in Common Summit, held from 4 to 6 September.

This new strategic partnership is intended to be part of the technical assistance programme of the Global
Green Bond Initiative (GGBI) announced by President of the European Commission Ursula von der Leyen in
June 2023.

The Global Green Bond Initiative will facilitate the flow of private capital from institutional investors into
climate and environmental projects in EU partner countries, thereby increasing their access to capital. It will
do so notably by providing technical assistance to green bond issuers in emerging markets and developing
economies (EMDEs) and by crowding in private investors through a dedicated de-risked fund, which will act
as an anchor investor in these economies’ green bonds. The fund's anticipated impact could spur green
investments totalling up to €15-20 billion.

To further strengthen the technical assistance arm of the Global Green Bond Initiative, the GGBI coalition
seeks to work together with strategic partners including regional and local development banks across the
globe, in particular, to support the origination of green bonds, the development and identification of pipelines
of green projects and the development of credible and coherent green bond frameworks.

This new strategic partnership between the GGBI coalition, the Inter-American Development Bank and the
IDB Invest is a first step in that direction.

Green bonds are debt sold to investors with a commitment to use all the proceeds for green investments.
First launched in 2007, they have become globally recognised as a key tool in mobilising capital from private
investors for projects with environmental impact, thus helping to finance sustainable development. The GGBI
coalition also sees potential in green bonds for developing and strengthening local capital markets in
developing countries.

Full details about the involvement of the participating organisations in specific deals and activities will be
worked out under this framework for cooperation.

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The full text of the joint declaration signed today is below:

Global Green Bond Initiative: A common objective

Scaling up sustainable finance through Team Europe and strategic partners worldwide

Green bonds are globally recognized as a key tool in mobilising capital from private investors for investments
with environmental impact and in contributing to financing a sustainable recovery. In the presence of the
European Commission, the European Investment Bank (EIB), the Cassa Depositi e Prestiti (“CDP”), the
Spanish Agency for International Development Cooperation (“AECID”), the European Bank For Reconstruction
and Development (‘’EBRD’’), Germany’s development bank KfW (“KfW") , Société de Promotion et de
participation pour la coopération économique (“PROPARCO”) for the whole Agence Française de
Development (“AFD”) Group, acting as a a consortium of European Development Finance Institutions as well
as the Green Climate Fund (GCF), all together being the Global Green Bond Initiative Coalition (“WE”), intend
to join forces to cooperate on technical assistance to support green bond markets in emerging markets and
developing economies (EMDEs) and enable the development and strengthening of local capital markets
through the Global Green Bond Initiative (“GGBI”).

The GGBI intends to combine different types of possible interventions to strengthen the green bond markets
so as to deliver maximum impact. Amongst others, the GGBI intends to:

 mobilise private investors through a dedicated public-private fund, which would act as anchor investor
acquiring a portion of green bonds issued by private, sovereign, and sub-sovereign entities in EMDEs and
attract further investors at transaction level;
 support green bond issuers by providing capacity building and technical assistance at country level. This
may include helping partner countries develop credible and interoperable green bond frameworks to identify
a pipeline of green projects (including infrastructure projects) and to carry out the issuance ensuring high
quality reporting.

In this context, the consortium of European Development Finance Institutions and the GCF (via its Project
Preparation Facility window) are looking forward to collaborating with strategic partners including regional
and local development banks across the globe that can contribute to the GGBI technical assistance
programme.

The promotion of green bonds in the LAC region, through the GGBI, is also an important part of the EU-LAC
Global Gateway Investment Agenda which was launched during the EU-LAC summit of 17/18 July 2023. So,
today, WE intend to start building the network of strategic technical assistance partnerships with the Inter-
American Development Bank (“IDB”) and the Inter-American Investment Corporation (“IDB Invest”).

Since 2016, IDB and IDB Invest have been extensively supporting the development of Thematic (Green, Social
and Sustainable) Bond Markets in their member countries in Latin America and the Caribbean (“LAC”). The
array of IDB and IDB Invest supports include: working with public and private sector issuers, governments
and regulators on enabling the business environment necessary for the development of sustainable capital
markets, generating technical capacity at market level on green lending through Sustainable Finance
Roundtables and Councils across, providing issuers, both public and private technical support to access
and/or develop green, social and sustainable markets; and, since 2021, transparent and standardized
reporting via IDB’s Green Bond Transparency Platform, IDB Invest recent work supporting voluntary private
sector efforts in building pre compliance green, social, and sustainable taxonomies in several countries.

This partnership between the consortium of European Development Finance Institutions, IDB and IDB Invest
is intended as a strategic reinforcement to the GGBI technical assistance program for its deployment in LAC,
given their in depth and valuable experience. The experience of the IDB and IDB Invest in LAC labelled debt
market brings tools and knowledge to promote, for example, support for pipeline origination, development of

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national taxonomies, capacity building and reporting through the Green Bond Transparency Platform and use
of credit enhancement instruments. IDB Group’s work contributes to supporting market development by
designing incentive and risk-sharing systems to promoting best practices in the market on annual reporting,
verification processes and alignment with national and international impact development goals and to
delivering impact by strengthening harmonized impact reporting globally, and scale of the Green Bond
Transparency Platform concept through regional partners (GBTP 2.0).

The Signatories acknowledge and agree that this present letter of intent is not a binding agreement and does
not represent any commitment with regard to funding on the part of the Signatories. Any cooperation
between, and commitments by the Signatories that may be formalized will be subject to separate
agreements that may be executed by the Signatories’ authorized representatives pursuant to each of the
Signatories’ policies and procedures and their internal approvals. The IDB Group’s potential support shall be
conducted in accordance with the policies and procedures of each IDB group institution.

Background information

About AECID

AECID, the Spanish Agency for International Development Cooperation, is the main management body of the
Spanish Cooperation, aimed at poverty reduction and sustainable human development. Its strategic
roadmap, in line with Agenda 2030, is the 5th Master Plan for Spanish Cooperation, based on a human rights
approach; it pays special attention to three cross-cutting issues: gender, environmental quality and respect
for cultural diversity. AECID’s toolbox includes technical assistance and financial cooperation, managed
through FONPRODE (Fondo para la Promoción del Desarrollo). Launched in 2011, it includes grants and
loans, and implements both debt and equity operations.

About Cassa Depositi e Prestiti

Cassa Depositi e Prestiti (CDP) is the national promotional institute, that has been supporting the Italian
economy since 1850. The main goal of CDP is to accelerate the industrial and infrastructural development of
Italy to boost its economic and social growth. CDP focuses its activities on sustainable development at local
level, supporting the innovation and growth of Italian enterprises, also in the international arena. It partners
with local authorities, in a financing and advisory capacity, to create infrastructures and improve services of
public value. CDP also participates actively in international cooperation initiatives to realise projects in
developing countries and emerging markets. www.cdp.it

About the GCF

The Green Climate Fund (GCF) is the world’s largest dedicated climate fund. GCF’s mandate is to foster a
paradigm shift towards low emission, climate-resilient development pathways in developing countries. GCF
has a portfolio of $12.8 billion ($48.3 billion including co-financing) delivering transformative climate action
in more than 120 countries. It also has a readiness support programme that builds capacity and helps
countries develop long-term plans to fight climate change. GCF is an operating entity of the financial
mechanism of the United Nations Framework Convention on Climate Change (UNFCCC) and serves the 2015
Paris Agreement, supporting the goal of keeping average global temperature rise well below 2°C.

About the European Bank for Reconstruction and Development

The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial
initiative in 36 economies across three continents. The bank is owned by 71 countries as well as the
European Union and the EIB. EBRD investments are aimed at making the economies in its
regions competitive, inclusive, well-governed, green, resilient and integrated.

About the European Investment Bank

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The European Investment Bank (EIB) is the European Union’s long-term financing institution, owned by its
Member States. We finance sound investments that contribute to EU policy goals. We support projects in
infrastructure, innovation, climate and environment, and small and medium-sized enterprises. EIB Global
carries out our operations outside the European Union. As a key partner in the EU’s Global Gateway, we aim
to support at least €100 billion of investment by the end of 2027, one third of the strategy’s target. With
offices across the world, EIB Global is close to local people, firms and institutions, and fosters strong Team
Europe partnerships with development finance institutions.

About the IDB

The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading
source of long-term financing for economic, social, and institutional development in Latin America and the
Caribbean. The IDB also conducts cutting-edge research projects and provides policy advice, technical
assistance, and training to public- and private-sector clients throughout the region.

About IDB Invest

IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the
economic development of its member countries in Latin America and the Caribbean through the private
sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize
economic, social, and environmental development in the region. With a portfolio of $15.3 billion in asset
management and 375 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory
services that meet the needs of its clients in a variety of industries.

About KfW

KfW Bankengruppe, founded in 1948, is the German promotional bank and one of the world’s leading
promotional banks. It is 80% owned by the German federal government and 20% by the federal states.

The business sector KfW Development Bank carries out financial cooperation (FC) projects with developing
countries and emerging economies on behalf of the German federal government, especially on behalf of the
Federal Ministry for Economic Cooperation and Development (BMZ). KfW Development Bank employs
approximately 1,200 people at its head office in Frankfurt am Main and 400 specialists at more than 60
international locations, who cooperate with partners all over the world. Their goal is to combat poverty,
secure peace, protect the environment and the climate and ensure fair globalisation. KfW Development Bank
is a competent and strategic advisor for current development policy issues.
CONTACT

Enrico Possenti
 e.possenti@eib.org

 +352 4379 - 82144

Press Office
 press@eib.org

 +352 4379 - 21000

RELATED TAGS

climate

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green bonds

REFERENCE

2023-318-EN

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