JBIC to Support Latin America’s Decarbonization Efforts

Jiji Press

13:12 JST, March 10, 2024

TOKYO (Jiji Press) — The Japan Bank for International Cooperation has set up a credit line of up to $100 million for the Development Bank of Latin America and the Caribbean, or CAF, to support investments in decarbonization projects in Latin American countries, Jiji Press learned Saturday.

JBIC itself will provide up to $50 million.

CAF is joined by about 20 countries, mainly from Latin America.

JBIC will provide loans to finance investments in decarbonization by companies in countries such as Ecuador and Colombia, in collaboration with Sumitomo Mitsui Banking Corp. and Joyo Bank. JBIC, affiliated with the Japanese government, will guarantee financing from private-sector banks.

The loans will mainly cover projects related to power grids and electricity generation using renewable energy such as solar and wind power.

Momentum for tackling global warming is growing in Latin American countries, ahead of the 30th Conference of the Parties to the U.N. Framework Convention on Climate Change, or COP30, in Brazil in 2025.