CABEI finances green initiatives in Costa Rica: 39% contain climate change mitigation components
• Energy efficiency projects, electric transportation, and public policies aimed at decarbonizing the economy have been part of the impact on the country in the last decade.
San José, June 5, 2024.- In line with its commitment to help the region develop initiatives that improve people's quality of life in an environmentally sustainable manner, over the last decade the Central American Bank for Economic Integration (CABEI) has promoted an important evolution in the management, instruments, mechanisms, and solutions for financing climate action.
From 2015 to the close of 2023, growth in risk management and opportunities linked to climate change has been exponential, with 41% (US$10.739 billion) of the total amount of CABEI approvals to the region designated for projects that contribute to adaptation, mitigation, and/or synergistic and/or transversal actions to combat the effects of climate change.
Costa Rica is the country with the highest share of climate approvals with 39%, equivalent to US$4.115 billion for climate change mitigation and adaptation. In the first case, through projects that promote the reduction of greenhouse gas (GHG) emissions through the implementation of energy efficient measures, electric transportation, and public policies aimed at decarbonizing the economy.
While in the case of adaptation to climate change, approvals have been oriented towards sustainable water resource management, flood control, resilient agriculture, and disaster risk management from the development of community resilience to the reduction of vulnerabilities.
The portfolio of climate projects in Costa Rica ranges from the Electric Train, to projects such as the Water Supply for the Middle Tempisque River Basin and Coastal Communities (PAACUME), or various projects related to access to clean water, sanitation and sewerage; as well as other iconic renewable energy projects that at the time were the most innovative in the region, such as Pailas I, the first geothermal plant in Central America, and several hydroelectric plants such as Reventazón, Cachí, and Pirrís.
Environmental safeguarding
Environmental sustainability is a transversal axis of CABEI's Institutional Strategy, which is why all programs and projects, before being approved, have an analysis carried out through the System for the Identification, Evaluation, and Mitigation of Environmental and Social Risks (SIEMAS), with which CABEI ensures compliance with social and environmental safeguards for all its operations through a SIEMAS Plan that is formulated on the basis of the Performance Regulations and is a comprehensive part of the contract, under the client's implementation responsibility, and of mandatory compliance.
CABEI's leadership in climate financing demonstrates its commitment to the environment and how it is able to diversify its business strategy by designing financial solutions that support its member countries in joining this effort, which represents an investment not only for the present, but also in the future, ensuring a legacy of resilience and sustainable prosperity for future generations.
