Supporting LAC countries to mobilize private sector carbon finance (WB-P514127)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
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
Jul 31, 2026
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
ENVIRONMENTAL DEFENSE FUND, INCORPORATED
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Climate and Environment
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 2.30 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)
$ 2.30 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)
$ 12.30 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 @ WB website

Updated in EWS Sep 3, 2026

Disclosed by Bank Jun 3, 2026

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

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 to the WB, this proposed Investment Project Financing (IPF) operation aims to enhance the capacity of participating Latin America and Caribbean (LAC) countries to effectively monetize carbon credits generated through different projects including World Bank-supported operations (e.g. FCPF, ISFL, others). By strengthening institutional, legal, and technical frameworks, the project will enable countries to access and benefit from private sector carbon finance, thereby supporting the sustainable development objective including sustainable job creation. The operation will provide targeted support to government agencies and relevant stakeholders in participating countries, focusing on:- Clarification of institutional arrangements for country participation in carbon market transactions;- Operationalizing key carbon market and Article 6 tools to enable the issuance of Letters of Authorization;- Providing 'last mile' transaction support to enable transaction of carbon credits;- Supporting knowledge exchange and regional collaboration to promote best practices and innovation in carbon finance.Through these interventions, the project seeks to unlock new sources of private sector finance, strengthen country ownership in accessing sustainable debt-free financing streams, and contribute to the achievement of national and regional sustainable development goals. The operation will be closely aligned with World Bank priorities including creation of sustainable economic opportunities and job creation. The operation will use a Recipient-Executed small grant to a recipient/grantee and then this grantee could execute those funds and deliver the project activities or also hire firms to cover some of the activities is not able to deliver directly (e.g. legal transaction advice).

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

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.

ACCESS TO INFORMATION

To submit an information request for project information, you will have to create an account to access the Access to Information request form. You can learn more about this process at: https://www.worldbank.org/en/access-to-information/request-submission

ACCOUNTABILITY MECHANISM OF THE WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. Information on how to file a complaint and a complaint request form are available at: https://www.inspectionpanel.org/how-to-file-complaint

How it works

How it works