US Announces Americas Partnership Fund for Nature to Boost Climate Action, Job Creation, and Invest in Natural Capital

Initiative announced at the Leaders’ Summit of the Americas Partnership for Economic Prosperity will support Latin America and the Caribbean with technical cooperation, unlock nature-based solutions, and aim to mobilize significant public and private capital. Partnership with Inter-American Development Bank and donors like Canada is crucial.

• The Americas Partnership Fund for Nature, announced by President Biden at the Leaders’ Summit, aims to foster investment in the Western Hemisphere’s natural capital, promoting nature-based solutions (NBS), reducing greenhouse gas emissions, enhancing job creation, and protecting ecosystems and livelihoods from climate change impacts.
• The Fund will provide Latin American and Caribbean partner countries with technical cooperation to integrate climate, biodiversity, natural capital, and NBS into their economic development plans and investments, addressing the issue of many potential projects not maturing due to a lack of initial grant funding.
• The Fund for Nature will offer grant financing for technical cooperation projects, including analytics, project design, capacity building, and natural capital valuation. The results of these projects will aid the financing of NBS via innovative mechanisms, such as debt-for-nature, debt-for-climate swaps, and sustainability-linked bonds.
• Partnering with the Inter-American Development Bank (IDB), the Fund for Nature will capitalize on the IDB's initiatives in Latin America and the Caribbean to value ecosystems, enforce policies and regulations, and initiate pilot projects. The IDB has shown considerable leadership in nature-positive finance and is set to host the Fund for Nature.
• The Fund for Nature is anticipated to mobilize considerable capital from both public and private investors. It will introduce new, private-sector centered approaches to natural capital finance, and experiment with initiatives like the Galápagos Marine Bond and the Belize Blue Bond to attract IDB finance, international fund sources, and private investors.

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