IDB and C40 to Strengthen Partnership for Climate Action

The Inter-American Development Bank (IDB) and the C40 Cities Climate Leadership Group (C40) signed an agreement today to work together on joint climate action and increased access to credit for cities in Latin America and the Caribbean (LAC). IDB President Ilan Goldfajn and C40 Executive Director Mark Watts signed a Memorandum of Understanding with Freetown Mayor Yvonne Denise Aki-Sawyerr as an honorary witness, to formalize and strengthen the existing partnership. This partnership focuses on crucial areas for sustainability and climate action, such as urban development and municipal finance, sustainable transport, water, sanitation, solid waste, and circular economy.

"Cities are heavily impacted by extreme climate events, and they must be front and center in building resilience going forward. With this new agreement with C40, we're enhancing knowledge exchange, technical assistance programs, and collaboration to promote and scale up innovative solutions for more resilient cities," Mr. Goldfajn said.

Mark Watts, Executive Director of C40 Cities, said: "Today's agreement underscores the recognition of the critical role of cities in addressing the climate crisis. Cities in LAC are not only on the frontlines of the climate crisis but also at the cutting edge of innovative climate solutions. This is a first-of-its kind partnership with IDB, which will support cities across the region to access finance to build more resilient and sustainable communities. Together, we can accelerate a transition to cleaner transport, more efficient waste management, and equitable urban growth that meets the needs communities across the world."

This three-year agreement encompasses three interconnected action plans in sustainable urban development and municipal finance, sustainable and clean transport, and the transition to a circular economy in LAC cities' water, sanitation, and solid waste sectors. The IDB and C40 will work together on eight transformative initiatives. These include, for example, the Regional Roadmap for Subnational Finance, the Electromobility Knowledge Dissemination Initiative, the implementation of Clean Air Zones, the Green and Thriving Neighborhoods Pilot Projects, Zero Emissions Freight Financing, and the Solid Waste and Circular Economy Hub.

Supporting climate initiatives is part of a broader effort to boost access to finance for cities in Latin America and the Caribbean. The IDB is working to expand the availability of credit for cities to help them meet their existing responsibilities while also investing in resilience to be more prepared for climate events. This includes supporting cities in developing a robust pipeline of project proposals, helping municipal governments improve their creditworthiness, and creating spaces for cities across the region to exchange information and learn from one another.

In this context, the IDB and C40 will continue to develop joint activities, including regional and global workshops and events, knowledge generation, pilot project design and implementation, and technical assistance programs with cities in the region.

Action plans will focus on developing and testing innovative solutions, generating transformative knowledge, and strengthening governments' capacities and networks. They will include a detailed scope of activities, an estimated timeline for completion, potential financial and non-financial resources, output indicators, and evaluation mechanisms.

The signing took place during the Mayors and Secretaries of Finance Forum to Promote Access to Finance in Cities of Latin America and the Caribbean, in the context of the Urban20 Summit held this year in Rio de Janeiro.