Climate – International World Of Business

Cosmic cruise control: astrocartography-led holidays with Royal Caribbean

Press Room Team — Thu, 03 Jul 2025 19:35:30 +0000

LONDON, July 2, 2025 – Astrocartography – the practice of mapping planetary influences onto geographic locations from a birth chart – has surged by 53%* in popularity in the last year. The practice identifies which places on earth resonate most with an individual, giving holidaymakers the perfect opportunity to visit new locations that cosmically align with where to travel for their best holiday. Embracing the growing trend, Royal Caribbean has partnered with leading astrologer, Clarisse Monahan, to help travellers align their holidays with personal goals.

The Stars Align: How Astrocartography Works
Astrocartography – “astro” relating to stars and “cartography” the study of maps – is personal to each individual, painting a unique picture based on a snapshot of the planets’ positions at the exact moment of birth.

«Astrocartography takes this personalised cosmic blueprint revealing where different planetary energies are strongest for each individual,” said Monahan. “These personalised planetary lines help people discover or map locations for love, work and travel, crisscrossing the world and many intersecting over the ocean, making Royal Caribbean’s diverse range of global itineraries perfect for connecting with these unique energies. Some locations resonate with us more than others, and astrocartography can help find these place-based lures to optimise romance, success in work, or create family memories on holiday.”

Whether it’s the Venus lines (love, beauty, and harmony), Mars lines (adventure, passion and drive), Moon line (nurturing and emotional connections), Jupiter lines (luck, expansion, and abundance) or Saturn lines (challenges, discipline, and lessons) that people want to explore, Monahan explained that people “move between places to direct a sense of purpose, rather than staying put to figure out who we are.”

To support those who are looking to explore locations that cross over their birth chart, Royal Caribbean is helping to align the magic of the seas and the stars at once.

Written in the Waves: Unforgettable Holidays According to Destiny

For holidaymakers looking for love and passion, the Venus line is recommended. Venus destinations could include:

The Western Mediterranean:Experience a Western Mediterranean cruise on Allure of the Seas visiting destinations including Naples, Italy; Barcelona, Spain, and Provence, (Marseille) France. Holidaymakers can gaze in awe and wonder at wow-worthy architecture and natural beauty throughout the region.
The U.S. and Caribbean: An island romance might be awaiting on a Caribbean cruise on Icon of the Seas. The vibrant energy of destinations like Roatan, Honduras, and Cozumel, Mexico, combined with the idyllic Perfect Day at CocoCay, Royal Caribbean’s award-winning private island in the Bahamas, creates a playful, exciting atmosphere perfect for connecting with loved ones.

Travellers looking to unleash their adventurous spirit and expand their horizons can follow the Jupiter line. Jupiter destinations can include:

Spain and Portugal: Guests can dive headfirst into a journey of discovery on Liberty of the Seas’ Spain and Portugal cruise, exploring the rich cultures, dramatic landscapes, and vibrant hustle and bustle of Lisbon, Portugal; La Caruna and Vigo, Spain. The days are packed with scenery scoping and memory-making across thrill-packed activities such as Tidal Wave, the first boomerang style slide at sea.
Alaska: For an epic journey, an Alaska cruise on Anthem of the Seas explores the Last Frontier and the region’s captivating wilderness and explore the great outdoors.

For holidaymakers seeking to strengthen emotional connection, adventurers should follow their Moon Line. Moon destinations could include:

Norway: Adventurers can embark on a soul-stirring journey on a Norwegian cruise on Liberty of the Seas to explore Norway’s serene landscapes, perfect for mindful walks and quiet reflection.
Italy: A European adventure on Brilliance of the Seas starts from Ravenna, Italy, and explores unforgettable landscapes and world-renowned cities for the ultimate adventure in between shores.

“At Royal Caribbean, we know that travel is so much more than just visiting new places; it’s about creating unforgettable memories that deepen relationships with friends and family,” said Gerard Nolan, vice president, Europe, Middle East and Africa, Royal Caribbean. “By exploring astrocartography, we’re empowering holidaymakers to consider trips that align with their deepest desires and create truly meaningful, memorable and transformative experiences.”

Holidaymakers can identify their personal planetary lines before confirming a destined Royal Caribbean holiday by visiting various astrocartography websites or booking a personalized reading with an astrocartographer. For more information on available holidays around the globe, guests can visit Royal Caribbean’s website.

*Comparison of UK online news and social mentions from 1st May 2023 to 31st May 2025 using Brandwatch Consumer Research

About Royal Caribbean
Royal Caribbean, part of Royal Caribbean Group (NYSE: RCL), has delivered memorable vacations for more than 50 years. The cruise line’s game-changing ships and exclusive destinations revolutionize vacations with innovations and an all-encompassing combination of experiences, from thrills to dining and entertainment, for every type of family and vacationer. Voted “Best Cruise Line Overall” for 22 consecutive years in the Travel Weekly Readers Choice Awards, Royal Caribbean makes memories with adventurers across more than 300 destinations in 80 countries on all seven continents, including the line’s top-rated exclusive destination, Perfect Day at CocoCay in The Bahamas.

Media can stay up to date by following @RoyalCaribPR on X and visit www.RoyalCaribbeanPressCenter.com. For additional information or to book, vacationers can visit www.RoyalCaribbean.com, call (800) ROYAL-CARIBBEAN or contact their travel advisor.

Climate Finance by Multilateral Development Banks Hits Historic Record in 2023

Press Room Team — Fri, 04 Oct 2024 01:29:58 +0000

Sum for low-and middle-income economies was $74.7 billion, including $24.7 billion for climate change adaptation
MDBs offered record $125 billion last year for climate action worldwide
Mobilized global private finance nearly doubled to $101 billion compared to 2022

Multilateral development banks (MDBs) announced today that their global climate finance reached a record high of $125 billion in 2023. The combined total last year, including the Inter-American Development Bank, is more than double the amount provided in 2019, when MDBs announced their ambition to increase volumes over-time at the United Nations Secretary General’s Climate Action Summit.

Low and middle-income economies

Last year, $74.7 billion of MDB climate finance were for low- and middle-income economies. Of this sum, 67% – or $50 billion – went to climate change mitigation and $24.7 billion, or 33%, for climate change adaptation. The amount of mobilized private finance for this group of countries stood at $28.5 billion.

High-income economies

In 2023, $50.3 billion were allocated for high-income economies. Of this amount, $47.3 billion, or 94%, were for climate change mitigation and the remaining $3 billion or 6% were for climate change adaptation. The amount of mobilized private finance for high-income countries stood at $72.7 billion.

Climate finance in focus at COP29

Today’s announcement comes in the run-up to the 29th session of the Conference of the Parties (COP 29) to the United Nations Climate Change Conference that will be held in Baku, Azerbaijan in November 2024. One of the key deliverables of COP29 is to increase global climate finance and reach an agreement on the new collective quantified goal of climate finance.

MDBs working as a system

In April, leaders of 10 MDBs announced joint steps to work more effectively as a system and increase the impact and scale of their work. In a Viewpoint Note, the leaders outlined key deliverables for joint and coordinated action in 2024, focusing on climate action including developing a common approach to measuring climate results and supporting countries to design country platforms, among others. 

IDB lending in Latin American and Caribbean countries

In 2023, the IDB climate finance to Latin American and Caribbean countries totaled $7.5 billion, consisting of $6.1 billion to the public sector from IDB, $1.5 billion through IDB Invest’s total commitments of own-account long-term finance, and $25 million for innovative projects from the IDB Lab. The IDB reports on all member countries collectively given that several small-island and low-lying coastal states in the region remain critically vulnerable to climate change regardless of income level.

“The IDB is committed to triple its climate finance in the next decade and offer a diverse set of innovative financial instruments to boost the scale of climate action in the region. The MDBs will jointly report on climate financing towards a new collective goal on climate finance”, said IDB president, Ilan Goldfajn.

Transparent joint reporting on climate finance

The Joint Report on Multilateral Development Banks’ Climate Finance is an annual collaboration to publish MDBs’ climate finance figures, together with a clear explanation of the methodologies for tracking this finance. The joint report, along with the banks’ independent publication of their own individual climate finance statistics, is intended to track progress in relation to their joint climate finance objectives such as those announced at COP21 and the greater ambition pledged for the post-2020 period.

The 2023 multilateral development bank report, coordinated by the European Investment Bank (EIB), combines data from the African Development Bank (AfDB), the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), the Council of Europe Development Bank (CEB), the European Bank for Reconstruction and Development (EBRD), the EIB, the Inter-American Development Bank (IDB), the Islamic Development Bank (IsDB), the New Development Bank (NDB) and the World Bank Group (WBG).

About the IDB

The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public- and private-sector clients throughout the region. Take our virtual tour.

About IDB Invest

IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $21 billion in assets under management and 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.

Climate and Finance Adaptation in Latin America and the Caribbean

Press Room Team — Mon, 15 Jan 2024 16:01:55 +0000

Climate change is a risk to public and private finances. 2023 was (for now) the warmest year on record, reaching 1.4°C above pre-industrial level. With El Niño raging strong the region grappled with unusually strong droughts, forest fires, hurricanes, and massive floodings with disastrous consequences. At first glance, these events can bring important loss of lives and material wealth to affected regions. However, delving further into these events, we can also identify important systemic problems and risks with ramifications through the financial and fiscal sectors. In our latest publication Heat and High Water: Nine Pathways to Climate Resilient Development, we delve into what adaptation means to the fiscal and financial sector and what the government can do about it. In this Blog, we explore 4 key insights of it:

To ensure sustainability, governments must incorporate climate risks into their fiscal planning.

Governments are expected to lead relief efforts and support reconstruction. Picture the aftermath of an important extreme weather event. A hurricane wreaks havoc in an urbanized coastal region, a forest fire turning communities into ashes one by one, or a drought or a flood ruining the yearly harvest. The government is expected to act. Relief efforts are needed to evacuate and provide necessities to displaced communities, all dragging significant fiscal resources. In addition to such liabilities, the government might (rightly) be pressured into helping finance reconstruction for the most vulnerable besides all the public assets that must be rebuilt or repaired. All these actions are costly, demanding resources and liquidity from the government to act.

These unforeseen spending surges to fund relief efforts can deteriorate its fiscal balance. Furthermore, the increased spending might compound with a decrease in future revenue caused by the destruction, which could, in turn, imperil the country’s credit standing, raising its lending costs. Viewing relief and reconstruction as contingent liabilities and preparing for them is essential to managing the fiscal burdens that climate change may cause.

Governments can proactively manage potential fiscal obligations by exploring various climate risk scenarios and developing possible responses. This allows the government to manage the impact of unforeseen events on the budget, which can be done through multiple instruments. For example, governments can consider using reallocation, contingency funds, and reserve funds. Governments can also use financial instruments for risk management, such as contingent credits arranged in advance to provide financial support for unforeseen events. Risk transfer options, including insurance, catastrophe bonds, and risk pools, can be instrumental for rare, high-impact events like catastrophic hurricanes.

2. Financial institutions’ business models are strained; the government can mandate or incentivize the private sector to factor in climate risk when making decisions

Households and firms that lost their assets and way of living usually have mortgages, loans, or collaterals associated with them and may not have enough liquidity to sustain themselves through the recovery period. Banks are accustomed to these kinds of risks and have models to manage them. However, as climate change alters weather patterns, the bank’s models might fail to account for this year’s harsh events. Similarly, insurance companies can be caught off guard by multiple events leaving them short on liquidity. In future years, certain areas might suffer a surge in insurance costs or, worst case, a refusal to insure assets, leaving locals in high-risk areas unprotected. Helping households, firms, and decision-makers account for these risks is important to ensure resilience and that they can make informed decisions to reduce or manage the risks. Governments can address this directly by assessing the risk to physical assets or indirectly by requiring firms to disclose climate-related risks, thus helping investors and stakeholders to adapt their decision-making. Furthermore, firms may be mandated to implement practices to manage these risks, ensuring transparency and accountability.

3. Financing adaptation is key to building resilience and reducing vulnerability.

Adaptation means, among many options explored in our publication, studying the hazard zones and avoiding them, reinforcing infrastructure against extreme weather events, improving the housing of the most vulnerable, and having adequate evacuation and reconstruction plans. Adapting sectors such as critical infrastructure and cities and helping the most vulnerable increase their resilience can reduce the impact of climate change and, in consequence, the fiscal pressure and the risks to the financial system. However, many of these actions are costly. Governments can fund adaptation directly. For instance, they can update public investment rules to consider climate hazards or incorporate climate adaptation considerations in public procurement processes. The government can also change regulations to build the conditions for the private sector to finance adaptation, for example, by updating regulations or developing investment taxonomies to guide the private sector.

4. Climate change adaptation and financing adaptation are challenging; however, countries in Latin America and the Caribbean are taking important steps.

The required actions are many, the resources needed far outweigh their availability, and time is short. As adapting the finance and fiscal sector, and finance adaptation are pivotal for reducing risk and building resilience, the role of the ministries of finance and economy are key for climate action. In Latin America and the Caribbean, ministries of finance and economy are taking important steps in this matter, with countries developing policies and instruments such as green taxonomies, accounting climate change expenditure, and developing green finance strategies and debt instruments. Furthermore, ministries in the region are collaborating in these matters (as well as climate change mitigation) through the Regional Climate Change Platform of the Ministries of Economy and Finance of Latin America and the Caribbean, which is a collaborative network where the 26 Inter-American Development Bank borrowing member countries gather to collaborate in policies, build knowledge and share experiences. In September of this year, the ministries of economy and finance of the region gathered in Santiago de Chile and signed a joint statement to affirm their commitment to climate action and promoting sustainable finances.

IDB Invest and Allied Climate Partners Promote Climate Projects in Central America and the Caribbean

Press Room Team — Thu, 07 Dec 2023 23:53:28 +0000

DUBAI –At the 2023 United Nations Climate Change Conference (COP28), IDB Invest and the philanthropic investment organization Allied Climate Partners (ACP) agreed to support climate-related projects, and projects in Central America and the Caribbean.

This collaboration aims to accelerate the growth of bankable, climate-related projects and businesses in the Caribbean & Central America through areas of collaboration including IDB Invest sharing its expertise in manager selection and fund creation activities, and IDB Invest’s potential investment in ACP’s Caribbean & Central America fund.

Within the scope of the signed Memorandum of Understanding (MoU), IDB Invest will provide its expertise to ACP, exploring the possibility of participating in ACP’s initial fund focused exclusively in the Caribbean & Central America.

The MoU seeks to add strategic value to each of ACP’s underlying regional fund managers and their investees. Underlying funds may benefit from IDB Invest’s experience to add value across Caribbean & Central American markets. Additionally, IDB Invest may also provide technical assistance support to fund managers’ underlying investments.

James Scriven, CEO of IDB Invest said, “At IDB Invest, we see this partnership as a crucial step towards bridging the gap between decarbonization and development. Through early-stage financing, we’re not just investing in a greener future but also creating significant economic, environmental, and social impacts in the region. This partnership is a testament to our commitment to sustainable development and a cleaner, more resilient future for all.”

ACP is seeking to aggregate a $825 million investment global platform, backed by $235 million in philanthropic capital, to support the establishment of funds focused on the early, development stages of climate-related projects and businesses initially in four regions: Africa, Southeast Asia, the Caribbean & Central America, and India.

Approximately 75% of each fund will be senior equity, provided by MDBs, DFIs, sovereigns, and mission-aligned private sector investors. Through this model, ACP seeks to accelerate the climate transition and improve livelihoods in emerging economies and deliver significant environmental and social impact.

Latin America and the Caribbean at COP28

The countries of Latin America and the Caribbean are a critical part of the solution to global climate change challenges. In the IDB Pavilion of the Americas, the Bank is hosting more than 30 events with international leaders and experts to showcase initiatives on climate action, from cutting-edge financial instruments to the conservation and sustainable use of natural resources, the Amazon, a just economic transition, and more. Journalists covering COP28 on site are welcome to visit the pavilion, with no registration required. Consult the event schedule here. For journalists covering COP28 remotely, register to access broadcasts of selected events.

Location: IDB Pavilion of the Americas at Blue Zone Pavilion, Opportunity District (OA04G2).

About IDB Invest

IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $16.3 billion in assets under management and 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.

About Allied Climate Partners

ACP is a philanthropic investment organization with a mission to accelerate the climate transition and improve livelihoods in emerging economies by increasing the flow of capital to bankable, climate-related projects and businesses. ACP selects regional investment managers in emerging economies and supports them with first-loss capital, expertise, and the mandate to address a critical financing gap at the early, risk-oriented stages of the development process for climate-related projects and asset-oriented businesses. Without this support, many projects and businesses struggle to attract the necessary capital to achieve their climate-related goals. By proving this model, ACP aims to induce commercially-oriented public and private sector investors to invest where they likely would not otherwise.

Growing a tree doesn’t stop at planting: Why tracking long-term survival matters

Press Room Team — Sun, 22 Oct 2023 15:33:46 +0000

Let’s start with the good news: People around the world are planting trees. Given the vast expanses of degraded land, opportunities for restoration abound. Investors and funders are spending real money to support new initiatives and communities, and pledges to protect, plant and restore more than 1 trillion trees have inspired millions of people to act.

Now the bad news: There’s little information about what happens to those trees once they’re in the ground. How many survive? Are they truly restoring ecosystems and storing carbon as they grow? Are local communities benefiting from those trees?

Those key metrics of success are rarely tracked after saplings are dug into the soil.

Most organizations seeking funding for restoration projects are earnest. As with anything else, there are a few bad actors seeking to turn consumer money into trees that won’t grow tall and strong in the long term. But the thousands of locally led organizations that invest passion, energy and expertise into planting trees do have a positive impact on people and the planet.

So how do they measure their impact?

The Philippines is one of the world’s 17 mega-biodiverse countries, and its forests and oceans sequester huge amounts of carbon. But accelerating development and other factors are taking a toll. Reforestation is one strategy to protect these ecosystems. (Photo credit: Conservation International Philippines)

Conservation International and World Resources Institute have developed a field-test version of our Tree Restoration Monitoring Framework. This tool was developed for the Priceless Planet Coalition, a restoration alliance led by Mastercard that aims to restore 100 million trees over five years.

All 18 projects funded by the Coalition now monitor 13 required and six optional metrics of success and will continue to do so in the five years after they plant each tree. These indicators capture the transformation of saplings into trees and document the potential benefits of restoration for local communities, climate and biodiversity.

Tree growers follow detailed instructions, or protocols, that explain exactly how to collect the data, ensuring that progress is tracked consistently across the portfolio. Every protocol is applicable to any tree-growing project around the world and covers a wide range of techniques, ranging from the more traditional, such as tree and mangrove planting, to the more novel, such as efforts that accelerate the recovery of natural forests.

To check the collected data, researchers at Conservation International and World Resources Institute work hand in hand with tree growers in the field to pinpoint the location of each Priceless Planet Coalition planting site. These digital boundaries help monitor where sprouting trees are making progress toward the framework’s key indicators. This data can help assess the impact of projects and reduce the risk of failure by tracking where fires, floods and other threats to the land — what researchers call disturbances — have threatened planting sites in the past.

World Resources Institute and Conservation International use these geospatial boundaries, field-collected data and cutting-edge satellite techniques to assess important metrics of success for each site, such as the percentage of land covered by trees and the estimated amount of planet-warming carbon stored (see graphic below). This framework is different from others in the tree restoration sector because it emphasizes a limited number of metrics and provides clear guidance on how to collect the data.

Hands-on monitoring is critical to assessing the true impact of restoration programs like the Priceless Planet Coalition. (Photo credit: Conservation International Philippines)

It’s one challenge to write a comprehensive, global framework; it’s another to put it into practice. We quickly learned that we needed a tool that could collect, aggregate, organize and display all this data. In came the Integrated Monitoring Platform, a web and mobile app hosted on the TerraMatch platform, which connects tree growers with finance, technical support and data. Launched in April, the IMP provides these restoration champions with a single place where they can submit their monthly progress reports and will also show the results of our satellite analysis. Behind the scenes, it stores and organizes all incoming data, making it easy for project developers and researchers to access and use.

How is progress so far? The Priceless Planet Coalition project in Puerto Princesa, Philippines, began in early 2022, and the team at Conservation International-Philippines has mapped out exactly where restoration is happening. Through the IMP, project leaders also reported the number of trees growing in nurseries, how many they’ve planted and the total days that local people have been paid to work on the project. They will continue to add more sites to their project in late 2022 and 2023 and measure the baseline number of trees on each of their sites. In the coming years, they will review that data and track progress toward their goals.

In Brazil, we tested a protocol designed to monitor the number of trees restored and their survival rate. That inspired us to create new diagrams to make the protocol more user-friendly for data collectors in the field. After we gather and incorporate this important feedback, the framework will be formally published in 2023.

Monitoring the success of restoration projects isn’t simple. Collecting, organizing and analyzing data takes time, funding and training. Most of all, it takes a commitment to transparency. Our hope is that this Tree Restoration Monitoring Framework can become a useful tool for tree growers around the world. It’s time to shift the focus away from simply putting trees in the ground and toward their long-term survival and growth. That’s when tree planting turns into ecosystem restoration —and brings prosperity to communities around the world.

Isabel Hillman is the restoration monitoring manager at Conservation International. Edward Saenz is the project monitoring manager at World Resources Institute, and Will Anderson is that group’s land restoration projects manager. This article represents the views of World Resources Institute and Conservation International.

Introducing the sector-specific climate toolkits for infrastructure PPPs

Press Room Team — Fri, 11 Aug 2023 00:15:06 +0000

We stand at a global climate tipping point. We know the Paris Agreement 1.5° C limit is achievable but will take a quantum leap in climate action. It’s vital for governments to step up their actions particularly when it comes to translating their nationally determined contributions, national adaptation plans, and related policy commitments into pipelines of investments for both the public and private sectors. Investment and financing will be key drivers to building decarbonization pathways and climate resilience to meet Paris Agreement goals.

Private sector participation in climate-smart solutions is critical to meeting these goals by catalyzing innovation, competition, and leveraging financing opportunities—ultimately moving these solutions from the fringe to the mainstream. This is the key to drive the over $3 trillion in annual investments needed to meet these goals by 2050. Developing a pipeline of climate-smart public-private partnerships (PPPs) that translate the Paris Agreement commitments into viable, bankable solutions are at the center of meeting net-zero ambitions and building long-term resilience.

The delivery and implementation of practical tools aimed at developing low-carbon and resilient infrastructure will help pave the way in translating the goals of the Paris Agreement into tangible action, particularly in emerging market and developing economies (EMDEs) and to enable private sector participation.

The World Bank Group stepped in to meet this need and launched the Climate Toolkits for Infrastructure PPPs as one of the primary tools for accelerating climate action. Deployed so far in 14 countries, the initial Umbrella Toolkit is designed for multisector applications, providing a modular approach to identify climate risks and entry points to incorporate mitigation and adaptation measures throughout the project identification, appraisal, contract structuring, and tendering phases of infrastructure PPPs.

Building on the Umbrella Toolkit, the World Bank Group has now launched five additional sector-specific Climate Toolkits for Infrastructure PPPs tailored to the development of low-carbon and resilient infrastructure in the following sectors: Water Production and Treatment, Transport (Roads), Digital/ICT, Energy (Hydropower), and Energy (Solar and Wind) PPPs.

The toolkits are designed and structured to follow the upstream-to-midstream phases of the PPP life cycle process building from the Umbrella Toolkit for each sector as follows:

Module 1: Assists users with mapping climate policies and assessing projects against climate objectives in order to (i) identify climate aligned investments, and (ii) identify opportunities for alignment through pinpointing areas where climate-informed scope revisions may be required.
Module 2: Provides a simplified methodology for the preliminary Life Cycle Assessment of the project’s greenhouse gas emissions at a preliminary stage based on the project’s typology and publicly available data. It also provides practical analytical steps to document—at a preliminary stage—which climate risks could affect a project, what their impact could be, and which adaptation measures might be applicable.
Module 3: Provides tools to qualitatively estimate the impacts of climate considerations on the costs, benefits, and value for money of infrastructure projects. It also identifies opportunities to tap into new and innovative financing options, including climate and sustainable finance, and blended finance.
Module 4: Proposes a set of output requirements in the form of key performance indicators, certification requirements, and reporting that can be embedded in the PPP contracts to ensure compliance with the climate objectives that are specific to each sector.

This body of work—the Umbrella and the five sector-specific toolkits—are an innovation to help address fundamental challenges that have long inhibited private financing of climate smart infrastructure. As we look towards the future, it is essential for countries to seize this opportunity for climate action, and these toolkits create an important pathway to advance Paris Agreement goals.

By embracing the standardized approach and practical guidance provided by these toolkits, client countries can unlock the potential of private financing and pave the way for sustainable and resilient infrastructure development. Together, let us take decisive action and ensure that the climate infrastructure needs of the world’s poorest communities are met. If we do so, we can make significant strides towards a more sustainable and resilient future for all.

Investing in Marine Conservation Makes Business Sense: IDB Invest Report

Press Room Team — Sun, 11 Jun 2023 18:35:56 +0000

Ocean economy estimated to contribute $407 billion to Latin America and Caribbean GDP

The marine areas in Latin America and the Caribbean, some of the most important in the world, stand a better chance of survival if restoration and conservation efforts are aligned with a core business purpose, a new IDB Invest and Finance Earth report shows.

A number of business opportunities can support the transition away from detrimental practices toward new innovative approaches to funding marine conservation while achieving a financial return, according to the study “Business Trends in Marine Conservation: Unlocking a Sustainable Blue Economy in Latin America and the Caribbean”.

“We have a great opportunity in Latin America and the Caribbean to unlock our ocean treasures to invest in marine areas that can provide resources to create sustainable business models that can have a positive impact on our coastal communities,” IDB Invest’s Director of Climate Hilen Meirovich said. “With the right infrastructure and investments in place, the size of the blue economy in the region could double by 2030.”

The blue economy, which includes activities related to oceans and water in general, provides food, jobs, and a source of income for millions of people around the world. It is estimated to contribute $3-$6 trillion to the global economy and over $407 billion to the region’s GDP.

The study provides a framework for evaluating the success of business models in marine conservation areas, considering factors such as sustainability, profitability, and social impact. This involves a pre-defined set of key performance indicators (KPIs) in line with the United Nations Sustainable Blue Finance Principles, capturing different dimensions of success.

For 18 Latin American countries, the maritime areas of their economic exclusive zone exceed 75% of the total territory and over 25% of the population of the region lives in coastal areas, with populations heavily dependent on key industries such as fisheries, aquaculture, shipping and tourism.

Through case studies on existing successful marine conservation business models, and recommendations for the private sector, the report identifies key barriers and develops recommendations for how businesses and wider stakeholders, including the public sector and nonprofits, can address them while supporting wider sustainability and economic goals.

The study was launched in Barbados during a series of events commemorating “Oceans Week”, organized by the IDB Group. Throughout the week, members of the government, academia, and other private sector organizations discussed opportunities to support a healthy marine environment, sustainable economic growth, and the next generation of high-quality jobs and livelihoods.

About IDB Invest

IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $16.33 billion in assets under management and 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.

About Finance Earth

A mission-driven social enterprise, working in partnership with world-leading environmental organizations to protect and restore nature utilizing market-based mechanisms and implementing bespoke financial tools. We help create projects – and the investment vehicles to fund them – that balance positive outcomes for nature, communities, and investors.

Can trade policy contribute to fighting global warming in Latin America and the Caribbean?

Press Room Team — Fri, 04 Nov 2022 01:54:11 +0000

Like their colleagues around the world, trade ministers in Latin America and the Caribbean (LAC) can barely get a break these days. Backlashes against globalization at home and abroad were swiftly followed by a public health crisis and geopolitical tensions that revived long-dormant calls for protection. As if that wasn’t enough, trade policy has also been called to play a role in a growing climate crisis, the social and economic impacts of which are potentially devastating, particularly for tropical regions such as much of LAC.

Unsuspected analysts suggest that this role should be pursued no matter the costs: “saving the planet is more important than the trading system.” But can trade policy really save the world? Can it be done without further undermining the gains from trade, a key driver of the region’ and world’s prosperity in the last three decades?

The most talked-about proposal—a carbon border tariff–suggests a negative answer for both questions. This tariff, levied according to the imports’ carbon content, aims at fixing an undesirable consequence of the world’s failure to harmonize carbon pricing across borders–investments flowing to countries with lower fossil fuel taxes, aka “carbon leakage.” However, most studies suggest that such scheme would have a small impact on global CO₂ emissions and would pose an additional threat to an already troubled global trade system.

Are there more hopeful alternatives? Joseph Shapiro’s insights about tariff reform seems particularly appealing as it offers policymakers a better chance to balance environmental and efficiency objectives. His findings suggest that trade policy in most countries provide a subsidy to emissions because tariffs favor trade in emission intensive goods. Think of intermediate goods such as aluminum, steel, or cement.

The solution to eliminate this bias would be tariff harmonization—i.e., to have the same tariffs for all sectors. This is an initiative that can be carried out unilaterally, without necessarily hurting World Trade Organization or preferential trade agreements (PTAs) principles or commitments. What is in it for LAC policymakers?

To answer this question, we conducted a detailed study of the impact of an emission-guided tariff reform for 20 countries in the region. We use data on direct and indirect embodied emissions of greenhouse gases (GHG, measured in CO2 equivalent units) in these countries’ domestic outputs and imports.

Carbon footprint

What we find is, first, that LAC’s trade has a carbon footprint large enough to merit a policy discussion, but low enough to dampen expectations about trade policy saving the world. GHG embodied in goods imported by LAC accounts for 21% of the region’s consumption emissions – including production and domestic and international transport – , but bear in mind this figure varies significantly across countries (figure 1). They are also likely to be a lower bound–particularly for those that export natural resources–because the link between trade emissions and land use and deforestation cannot be traced accurately.

Figure 1 – Share of Trade-Related GHG Emissions. Consumption Accounting

Source: Dolabella and Moreira (2022) based on 2014 GTAP MRIO.
Note: Countries ranked according to their share of imports in emissions, excluding land use and household emissions. A negative value means that changes in land use reduced rather than increased emissions. Domestic emissions are those produced and consumed domestically. Imports emissions are those produced abroad and consumed domestically.

The role of trade policy

The second set of findings focuses on trade policy’s contribution to this footprint. This is shown in figure 2, which plots the correlation between tariffs and the imports’ emission intensity. At least half of the countries in the sample have lower tariffs for “dirty” goods, that is, those whose production and transportation is intensive in emissions. The other half have either a neutral stance or higher protection for these goods.

A negative (positive) correlation can be interpreted a subsidy to (a tax on) trade emissions. For instance, Argentina and Brazil have some of the highest subsidies in the region (US$ per metric ton of CO_2e), whereas Colombia has some of the highest taxes (US$ 9 per metric ton of CO_2e).

To put these figures into perspective, recent estimates of the social cost of CO₂ range from US$56 to 83 per metric tons. Trade policies in the region are either pushing countries in the wrong direction or making a modest contribution to closing the gap between the private and social costs of carbon.

Figure 2 – LAC’s Tax and Subsidies on Trade Emissions. US$ per ton of CO_2e.

Source: Dolabella and Moreira (2022)
Note: The left-hand side variable is applied tariffs and the right-hand side variable is total emission intensity (CO_2e per dollar of output). Point estimates are represented by the clouds and green bars represent the 95% confidence interval.

What to expect from tariff reforms?

The third set of findings concerns tariff reforms. This is where things get complicated. The interpretation that a negative bias toward dirty goods is a subsidy requires the assumption that goods produced at home are cleaner than those coming from abroad. That is not always the case. According to our estimates, replacing imports by domestic output would increase emissions in as much as 22% of LAC trade relationships, which account for 33% of the region’s trade.

There are also other complications arising from jurisdictional and efficiency trade-offs. By eliminating the bias towards imports of dirty goods, governments might be lowering global emissions but increasing emissions at home. This would undermine their commitments to the Paris Agreement, not to mention the collateral effects it would have on local air pollution.

Likewise, eliminating emission biases by tariff harmonization might imply raising protection to noncompetitive sectors, which already enjoy relatively high protection in some of LAC’s largest economies. This would worsen resource allocation, causing the negative effects on welfare and growth that are well-documented.

One way to avoid these non-desirable collateral effects would be to combine tariff harmonization with trade liberalization. For instance, convergence to the OECD’s average tariff would make sure that the reform would steer clear of prohibitive efficiency costs.

In any event, even if tied with liberalization, it is important to get the expectations right. Since trade emissions, as shown, are, in most cases, just a fraction of the countries’ overall emissions, even a well-designed tariff reform is bound to have a limited impact.

Rather than messing with trade policy, a significantly better option would be to address what is arguably the elephant in the room: fossil fuel prices well below the socially optimum, made worse by generous subsidies. They currently stand at 1% of the region’s GDP, but can get as high as 12.5% in Venezuela, 2.6% in Ecuador, and 1.6% in Mexico and Argentina.

Achieving Climate Change Goals Means Redirecting 7 to 19% of GDP Worth of Spending Decisions

Press Room Team — Fri, 29 Apr 2022 03:26:45 +0000

The case for immediate climate action could not be more stark. Global temperatures have already risen by 1.1°C and over 3 billion people are highly vulnerable to the effects of a warming planet, according to the Intergovernmental Panel on Climate Change (IPCC). We need to immediately adapt to the impacts of a changing climate.

We also have to limit warming as close to 1.5°C as possible, the main goal of the Paris Agreement. Global emissions must peak very soon, if not right away, fall by more than 40% by 2030, and reach net zero around 2050. The more we delay action, the more difficult it will be to secure a sustainable and livable future for all.

Governments at present are rightly focused on imperative concerns, such as the Covid-19 pandemic and recovery, the war in Ukraine, disruptions to global value chains, rising commodity prices and inflation. Can we afford to address climate change goals?

A new IDB study finds that in Latin America and the Caribbean, achieving the Paris Agreement goals would require realigning 7% to 19% of GDP – up to US$1.3 trillion – worth of private and public spending every year. This is not a net cost: climate action would not only be much cheaper than the costs of inaction but would also bring substantial benefits. Moreover, climate action is not only about spending more. It is mainly about spending differently.

The results of our study lend perspective to the role of global climate finance and domestic policy reforms that can help governments finance climate action. Developed countries have pledged US$100 billion of climate finance to developing countries every year. They must urgently deliver on this promise. These flows, however, only represent a fraction of total needs. The bulk of the effort will come from rethinking institutions, planning and regulations to redirect existing public and private financial flows towards climate solutions.

Climate action means rethinking investments from day one

There is a global consensus that effective solutions to reaching net-zero emissions exist. These include investing in renewable energy instead of fossil fuels and switching to diets that require less space to produce food and help reduce pressure on ecosystems. There are also abundant adaptation solutions, including building infrastructure away from flood zones and choosing crops that are more resistant to heat and drought.

Many of these solutions carry net economic benefits. The return on resilience can reach as high as 400%. Decarbonization can also boost our economies. It can increase GDP by 1% by 2030 thanks to financial savings in energy, building and transport, health and productivity gains, as well as increased ecosystem services. These solutions could create 15 million net new jobs.

To adopt these solutions, we must consider climate goals at the design and planning stages. Reducing emissions does not mean building a natural gas plant and then spending more on a filter. It means prioritizing wind or solar from the start. Similarly, building a new road further from the coast can be much cheaper than spending more to build protection against sea-level rise. In developing countries that are currently building infrastructure to provide basic services for the coming decades, climate action and development are two sides of the same coin.

Humans and institutions are capital

Adapting to climate change is also linked to social spending. The pandemic has shown how the socioeconomic impacts of external shocks depend greatly on whether social protection programs are in place to help affected households, especially the poorest. The same is true for climate shocks such as cyclones or droughts.

Social spending is also crucial to ensuring a just transition. Moving to greener technologies will negatively affect certain groups, such as workers at coal power plants. Providing decent unemployment benefits, education and training opportunities will make a big difference in ensuring no one is left behind. Here too, development and climate spending are complementary.

Climate plans can help catalyze domestic and international finance

Where can governments find 7% to 19% of GDP for climate action? Our paper explores green fiscal reforms and the removal of fossil fuel subsidies. These actions together can free up to $200 billion per year. Governments will also need to manage the fiscal risks associated with climate goals. Oil and gas exporters could lose up to $3 trillion by 2035 as the global energy transition erodes royalties. Excise taxes on gasoline and diesel, used in countries like Costa Rica, will also need to be reformed as the number of electric vehicles increases. A long-term tax strategy can help identify ways to replace these revenues.

Regulatory and institutional reforms are the essential piece of the puzzle. Take cycling: For those who work close to where they live, biking can be cheaper than commuting by car. In cities, protected bike paths can be much cheaper than car lanes. Biking also comes with health benefits and reduces congestion. Regulations and institutions might work against biking. Local authorities might have a mandate to build roads, but not to build bike lanes or think about connectivity. Regulations may require the private sector to provide parking space for office buildings, not for cyclists. Changing city planning and requirements for office and home developers in this context is essential. It can be a simple way to redirect existing finance flows towards climate solutions.

Redirecting existing spending is critical for achieving climate and development goals together

Dozens of changes like these are needed. Governments can come up with comprehensive climate strategies that delineate the transformations needed in each sector and design roadmaps to remove the barriers preventing public and private financing of climate action. All ministries can play a role. Finance ministries, for instance, can help strengthen inter-ministerial coordination and liaise with multilateral development banks that can provide technical assistance and finance part of climate action.

None of this will occur in a vacuum. All countries must face the climate crisis while addressing other priorities. The pandemic and the war in Ukraine, however, show that governments can act decisively during emergencies. The climate emergency should be no exception.

Mining Industry Needs Strong Collective Action on Climate Change

Press Room Team — Wed, 06 Oct 2021 14:07:20 +0000

Toronto – Reducing emissions to counter the causes of climate change requires strong collective action by the mining industry, Barrick president and chief executive Mark Bristow says.

Bristow hailed today’s collective commitment by the International Council on Mining and Metals (ICMM) to a goal of net zero greenhouse gas emissions by 2050 in line with the recommendations of the Paris Agreement and said it represented an integrated approach that struck the right balance between environmental, social and economic needs. Barrick is a member of the ICMM and its Climate Change Advisory Group.

“Barrick already has a clear scientifically based emission reduction roadmap which targets a 30% cut by 2030 against our 2018 baseline and a net zero outcome by 2050, in line with ICMM’s goal,” Bristow said.

The company’s group sustainability executive, Grant Beringer, said a series of carbon-reducing initiatives was already being implemented across Barrick’s global operations. At Nevada Gold Mines (NGM), the world’s largest gold producing complex, which is operated and majority-owned by Barrick, these included projects such as the construction of a new solar power plant and the conversion of the TS power plant from coal to natural gas. These projects will support NGM’s transition from coal power to a dual energy solution which will reduce the complex’s carbon emissions by as much as 50%.