LATAM | Sep 2, 2022

IDB | Climate, capital and a new beginning for youth

/ Our Today

Reading Time: 4 minutes
A general view shows the Luis L. Leon “El Granero” dam affected by drought, in the municipality of Aldama, in Chihuahua state, Mexico, August 3, 2022. (Photo: REUTERS/Jose Luis Gonzalez)

By 2030, changing temperatures could push three million people a year into extreme poverty in Latin America and the Caribbean.

But also by 2030, the path towards decarbonisation could create 15 million net new jobs. Which future we will choose?

This month, the IDB took more critical steps toward unlocking climate-positive development, launching a key platform for finance ministries and leading the hemispheric conversation on sustainable use of water resources.

The imperative to empower youth was also in focus, while we provided new insight into the pandemic’s impact on businesses and approved projects that will benefit low-income families in Mexico, researchers in Uruguay and app drivers in Colombia.   

Latin American and Caribbean countries took a major step this month towards crafting better fiscal policies in response to climate change. 

The Regional Climate Change Platform of Ministries of Economy and Finance will enable critical problem-solving and cross-border cooperation as the ministries align public finances with resilience and decarbonisation goals – to both minimise risks and activate green growth. 

The IDB is proud to serve as technical secretary of the platform, which was launched under the pro tempore presidency of the Dominican Republic.

Launched in the Dominican Republic earlier in August 2022, ministries of economy and finance of Latin America and the Caribbean establised a regional climate change platform to exchange best practices. (Photo:

Much of our planet is parched, and Latin America is no exception. The Central Chile Mega Drought is the region’s longest in 1,000 years, and parts of Brazil, Paraguay, Bolivia and beyond are their driest in generations. And yet, Latin America and the Caribbean also holds about 30 per cent of the world’s fresh water. 

Amid perennial challenges and historic new stresses, how can we bring quality water and sanitation services to everyone?

The IDB coordinated the Americas programme at World Water Week 2022, gathering diverse voices to explore tools for maximising the impact and sustainability of today’s water, sanitation, and hygiene investments – from innovative financing mechanisms to nature-based sources and resource-planning tools, like our Hydro-BID. 

The young people of Latin America and the Caribbean face a future reshaped by the pandemic and tectonic changes in the world of work. Preparing them requires new vision and new action by all stakeholders – including the IDB. 

We marked this year’s International Youth Day by helping redesign education systems and develop the human capital that the region needs. Discover our marquee publication that surveys the damage of COVID-19 and charts ways to reboot education. And learn about our 21st Century Skills initiative, bringing together the public and private sectors to encourage the teaching and learning of critical transversal abilities.

More than four million students will benefit over the next four years from our Education, Youth and Employment (EYE) social bond programme, and we have a lot to learn, too: we invite our region’s young people to share their best and brightest ideas for improving commerce and integration. 

Argentina: $1.1 billion credit line to help decarbonise energy sector

  • First operation will slash emissions from electricity generation and expand transmission of renewables, helping to sustainably meet rising demand.  

Barbados: $100 million guarantee to promote environmental sustainability

  • Project will help reduce borrowing costs in raising funds for conservation activities that will safeguard natural riches.  

Mexico: IDB Invest financing to increase access to affordable housing in Mexico

  • Credits to strengthen small-business-based construction supply chain of leading housing developer and help bridge low- and middle-income housing gap.

Uruguay: $45 million to accelerate innovation and entrepreneurship

  • Loan will enable 1,000 postgraduate grants and 300 business innovation projects and will support some 100 entrepreneurs or new ventures, with a focus on women.

IDB, IDB Lab & Beat to promote voluntary savings for app drivers

  • Pilot programs in Colombia, Mexico and Peru and will test solutions for improving the finances of workers currently excluded from social-protection benefits.  
Inter-American Development Bank headquarters at Washington, D.C.

Companies throughout Latin America and the Caribbean survived the last two years by cutting back on investment. Today, capital levels remain depressed and threaten to engender an “economic long COVID.” 

A new study by the IDB and the Center for Global Development reveals the pandemic’s lingering toll on companies’ balance sheets. It proposes a series of novel recommendations to help firms reignite growth, including the establishment of temporary public-private institutions to bolster business recovery and new support for reorganisation and digitalisation. 


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