The Amazon Bioeconomy Fund: Unlocking private capital by valuing bioeconomy products and services with climate mitigation and adaptation results in the Amazon (GCF-FP173)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Countries
  • Brazil
  • Colombia
  • Ecuador
  • Guyana
  • Peru
  • Suriname
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Green Climate Fund (GCF)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Oct 7, 2021
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Inter-American Development Bank
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Climate and Environment
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity, Grant, Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 279.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 135.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Grant Amount (USD)
$ 137.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 598.10 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ GCF website

Updated in EWS Sep 21, 2022

Disclosed by Bank Sep 14, 2021

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According the GCF, this fund to finance investment projects will improve the bioeconomy in the Amazon, that is, the valuation of natural capital, allowing “bio-companies” to invest in reducing GHG emissions in the Amazon. The objective is to generate positive economic, climatic and social impacts by taking advantage of the variety of biological and genetic resources of the Amazon, the diverse productive landscapes and sustainable forestry.


The Fund will create 2 complementary components:

1. investment funds in bioeconomy and
2. access to private capital markets through green bond issues.
These components will be implemented through:
• concessional financing,
• performance-based incentives, and
• Technical assistance to increase the institutional capacity of ministries, National Development Banks, local concessionaires, development of standardized eligibility frameworks and assessment and structuring of bioeconomy funds.
The subprojects will be subject to preliminary evaluations and environmental and social management in line with IDB policies.
Indigenous peoples are involved and the program includes an explanation of how their voices will be incorporated and a reference to the stakeholder engagement plan.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

GCF financing

In addittion to USD 135 million lended as loan and USD 137.5 million as grant, the GFC funded USD 6.5 million as equity.

 

Co-financing

As co-financing, the GFC declares that the project receives other USD 155 million as loan, USD 145 million as guarantee, USD 4 million as equity, USD 14 million as grant and USD 1.1 in-kind.

 


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

GCF CONTACTS

General media inquiries

GCF Communications
PHONE +82 32 4458 6338 (KST)
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Request for information

ACCESS TO INFORMATION
Requests for project information may be submitted using the IDP Request for Information by email to: disclosure@gcfund.org.

 

You can also submit an information request using this online form: https://www.greenclimate.fund/about/disclosure/form.  Additionally, if information requested is denied, an appeal can be filed to the Information Appeals Panel: iap@gcfund.org.  You can learn more about the Information Appeals Panel at: https://www.greenclimate.fund/about/disclosure/appeals.


ACCOUNTABILITY MECHANISM OF GREEN CLIMATE FUND 


The Independent Redress Mechanism (IRM) addresses complaints by people who believe they are negatively affected or may be affected by projects or programmes funded by the Green Climate Fund (GCF). The complainant can raise issues related to any of GCF’s policies and procedures, including those relating to social and environmental issues, indigenous peoples, gender, and information disclosure, among others. If you submit a complaint to the IRM, it may seek to address the issues raised by facilitating problem solving or conducting a compliance process. You can learn more about the Independent Redress Mechanism and how to file a complaint at https://irm.greenclimate.fund/.


You can access a video about the IRM (English) at: https://youtu.be/1LanbriVhfs.


A brochure about the IRM can be accessed in English, French, Spanish, Portuguese, Arabic, Mandarin, Mongolian, Vietnamese, Russian, Ukrainian, Korean, German, and Kiswahili at: https://irm.greenclimate.fund/.

How it works

How it works