The Inter-American Development Bank (IDB) has signed an agreement with the International Renewable Energy Agency (IRENA) to join the Energy Transition Accelerator Financing (ETAF) platform, a global initiative launched by IRENA that seeks to mobilize funds for renewable energy investments.

As part of its commitment, the IDB plans to co-finance renewable energy projects and energy transition technologies in Latin America and the Caribbean region, with an allocation of up to $100 million.

IRENA Director-General Mr. Francesco La Camera and IDB CEO Mr. Ilan Goldfajn signed the agreement at the IDB Headquarters in Washington D.C.

“As the climate tipping point nears, the urgency for action on the energy transition has never been more pressing. We are very proud to announce that the IDB has joined our esteemed roster of ETAF partners. their invaluable expertise and substantial resources, the IDB’s collaboration will have a profound impact in Latin America and the Caribbean, catalyzing the energy transition and driving significant progress on energy access and security.”

Mr. Goldfajn said that “As the IDB increases its climate ambition, we must mobilize more capital for low-carbon technologies. By joining IRENA’s important financing platform, we are taking another significant step to support Latin America and the Caribbean’s energy transition goals, so the region can be part of the solution to this global challenge.”

The ETAF platform, with support from the United Arab Emirates (UAE), initially aimed to mobilize $1 billion by 2030. However, with the involvement of new partners such as the IDB, this target was surpassed this year, with the platform’s capital commitment standing at $1.25 billion, exceeding the initial goal. By leveraging its global reach and energy transition knowledge, IRENA is actively developing a pipeline of energy transition projects in emerging markets across Latin America and the Caribbean. These projects will be presented to interested ETAF partners, including the IDB, for potential funding and support.

To foster knowledge sharing and capacity building, IRENA, in coordination with the IDB, will also host webinars, workshops, and other activities aimed at providing guidance on project selection criteria, presentation requirements, and financing matchmaking. These efforts will contribute to the realization of Nationally Determined Contributions (NDCs) and Sustainable Development Goals (SDGs) on the road to COP28.