The Inter-American Development Bank (IDB) and the Japan International Cooperation Agency (JICA) signed a Memorandum of Understanding to support renewable energy and energy efficiency for the mitigation of climate change in Latin America and the Caribbean.
One of the key priorities of the JICA is to increase assistance and strengthen climate change operations in Latin America and the Caribbean. The region’s global greenhouse gas (GHG) emissions rate is currently 12 percent, which is relatively small but is expected to grow. In addition, the region contributes more to the green house emissions per capita compared with other developing countries, such as China and India.
In this context, this new co-financing framework proactively supports renewable energy and energy efficiency promotion programs and projects in Central America and the Caribbean. The framework includes Japan’s long-term loans of up to $300 million for the next five years.
This agreement will further strengthen the enduring and successful relationship between the IDB and Japan. Japan joined the IDB in 1976 as the first Asian member and has already contributed over $5 billion to the Bank’s financial resources. Japan has recently pledged additional $3.5 billion to the IDB’s Ninth General Capital Increase.