The Inter-American Development Bank (IDB) is expanding investments in renewable energy across the Amazon region and Central America through a new guarantee supported by Impact Fund Denmark. The USD 100 million guarantee, issued on behalf of the Danish state, enables the IDB to provide additional financing for renewable energy projects that would otherwise struggle to secure funding.
The guarantee will support investments in solar power, wind energy, energy storage and electric transport in some of the world’s most energy-poor regions. By sharing the financial risk, the guarantee allows the IDB to mobilise significantly more capital for climate investments and accelerate the green transition in the region.
Together with contributions from Norway and Sweden, the total guarantee amounts to USD 200 million and is expected to unlock up to USD 780 million in additional climate finance. The investments will help improve access to clean energy, create thousands of local jobs and strengthen economic development in communities across the Amazon and Central America.
The initiative demonstrates how innovative financing mechanisms can mobilise large-scale climate investments in developing markets. By leveraging Denmark’s strong credit rating, the guarantee supports renewable energy projects that contribute to lower emissions, greater energy security and more sustainable growth.