Region gets US$3 billion to support renewable energy efforts

Japan and the Inter-American Development Bank (IDB) are partnering to invest US$3 billion in Latin America and the Caribbean to support renewable energy and energy efficiency projects, as well as quality infrastructure projects related to energy savings. The agreement between the IDB and the Japan International Cooperation Agency (JICA) expands on the Co-financing for Renewable Energy and Energy Efficiency (CORE) programme, which was created in 2012 to support energy investments to mitigate climate change impacts in Central America and the Caribbean. It will increase the target amount of JICA’s highly concessional loan window from US$1 billion to US$3 billion, and will extend the term of the programme until April 2021. This will also broaden CORE’s geographical reach, enabling partners to fund projects in all low-and middle- income IDB borrowing member countries, as well as more vulnerable Caribbean economies not previously covered by the programme. An innovative aspect of this arrangement is the Japanese government’s creation of the Japan Quality Infrastructure Initiative (JQI), the IDB’s first built-in grant mechanism for a co-financing arrangement. Additionally, its prioritization of infrastructure furthers the Japanese government’s aim to promote quality infrastructure in Latin America and the Caribbean as a way of improving energy efficiency, safety, and sustainability. The agreement was signed by IDB President Luis Alberto Moreno and JICA’s Vice President Hidetoshi Irigaki during the IDB’s just ended 2016 Annual Meeting in Nassau, Bahamas. “Japan has been a valuable partner as we have worked hard to put sustainability at the front and center of our operations,” said IDB President Luis Alberto Moreno. “Latin America and the Caribbean have enormous energy and infrastructure needs and we believe the programme will help ensure that these investments have an even greater positive impact.”

Source: caribbean360.com
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