Latin American Green Bond Fund (LAGREEN)
Technical Assistance
LAGREEN is the first green bonds fund dedicated to Latin America. Its main purpose is twofold: to finance climate- and resource-friendly investments and to mobilise local and international private capital towards the issuance of more green bonds in Latin America.
LACIF is partnering with KfW to achieve the following objectives:
- to mobilise additional funding for Nationally Determined Contributions (NDC) implementation;
- to push local capital market development towards a transition to sustainable finance – thereby fostering transparency and long-term commitments in financial and economic activity;
- to reach a substantial greenhouse gas emissions mitigation and/or climate change adaption impact.
It is foreseen that the LAGREEN will have its main impacts on greenhouse gas abatement, green local capital markets and the economy as a whole.
With regards to climate impact, the current projection reaches an estimate of 5,160,000 CO2e tons avoided until 2029.
On the greening of capital markets it is estimated that every USD invested by the LAGREEN will lead to private sector investment of another USD 3, thereby mobilising USD 1.5 bn. and leading to a total investment volume of USD 2bn in Green Bonds.
On the level of the LAGREEN itself it is expected that at least 40% of its financing will stem from private sector financiers. The LAGREEN intends to support the development of local currency green bonds and the development of local capital markets.
Regarding the economy as a whole, through its investments into green infrastructure and especially transport infrastructure the Fund will reach a high number of final beneficiaries, estimated at 8.4 million and will create up to 1.593 jobs in the construction and 6.373 in the operations phase of the projects. Through the jobs created and maintained there will be an indirect element of poverty alleviation impact.
PERU SUSTAINABLE FINANCE STATE OF THE MARKET 2022
This report identifies green and sustainable investment opportunities in Peru, including how green and labelled instruments can attract investment to the country. The report describes the shape and size of the Peruvian sustainable debt market and an overview of supporting policy developments and milestones over the last decade. By disclosing tangible green opportunities for Peru’s critical economic sectors their alignment with leading international standards, and guidelines for investors and issuers, this report aims to contribute to the growth of Peru’s sustainable finance market.
The LAGreen Fund, with financial assistance from the European Union (LACIF), commissioned Peru’s Sustainable Finance State of the Market 2022, and the Climate Bonds Initiative (Climate Bonds) consulted key stakeholders in Peru on its content. Climate Bonds thanks PRCP, Garrigues, A2G and Bolsa de Lima for their insights.
