The Inter-American Development Bank and the Japan International Cooperation Agency have agreed to support renewable energy and energy efficiency for the mitigation of climate change in Latin America and the Caribbean.
The Japanese aid agency is the world’s largest with operations in over 150 countries and regions and has some 100 field offices. The organization assists economic and social growth in developing countries and promotes international cooperation.
One of the key priorities of the Japanese agency is to increase assistance and strengthen climate change operations in Latin America and the Caribbean, it said. The region’s global greenhouse gas emissions rate is currently 12 percent, which is relatively small but is expected to grow. In addition, Latin America and the Caribbean contributes more to the emissions per capita compared with other developing countries, such as China and India, said the development bank.
The agreement establishes a new co-financing framework to support renewable energy and energy efficiency promotion programs and projects in Central America and the Caribbean. The framework includes long-term concessional loans from the Japanese of up to $300 million for the next five years.
The agreement will give support for the development bank’s Energy Innovation Center launched jointly with the U.S. Department of Energy last year. The center serves as a regional incubator for cooperation, resource mobilization and knowledge dissemination. A Janaese technical specialist has been appointed to the center to promote effective and efficient cooperation with Japan. The center recently held a successful seminar on energy efficiency in Tokyo.