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Costa Rica has unveiled a groundbreaking initiative to mobilise private sector funds towards sustainable development. The country's latest project, a Project Preparation Fund (PPF), seeks to leverage up to $1.2 billion in private investments by 2030 for eco-friendly public infrastructure across sectors like energy, transportation, and sanitation.
Landscape view of Arenal Volcano, Costa Rica. AI generated picture.
This initiative emerges from the Sustainability and Resilience Facility agreement with the International Monetary Fund (IMF), showcasing a strategic partnership between the public and private sectors. The Inter-American Development Bank (IDB) plays a pivotal role in coordinating the fund's setup, potentially evolving into a collaborative platform with multiple donors.
The fund will offer contingent financial support, bolstering Costa Rica's capacity and technical prowess to meet Sustainable Development Goals (SDGs). Its focus spans four critical areas, from regulatory reforms to project identification and sustainable structuring, enhancing project appeal to investors.
Moreover, the European Investment Bank (EIB) and the World Bank are stepping up with financial mechanisms and technical assistance to propel Costa Rica's sustainability goals. These include green bond issuances and efforts to curb deforestation-related emissions, highlighting a comprehensive approach to environmental stewardship.
Read more: Jamaica's dawn of 'blue-green' bonds
Contributing to these efforts, the International Finance Corporation (IFC) will enhance the private sector's resilience to environmental regulation, introducing innovative financial solutions for the agro-industrial sector. Complementing these initiatives, Costa Rica is also crafting a sovereign bond strategy aligned with its SDGs and climate commitments, aiming to unlock further private financing for sustainability projects.
Through these multifaceted efforts, Costa Rica positions itself as a leader in environmental resilience, setting a precedent for global environmental and economic sustainability.
Highlighting the transformative power of nature-based solutions and their role in enhancing carbon markets is key to propelling us towards a more sustainable future. Recognising the crucial contribution of such projects, like those of DGB Group, is essential for meeting environmental objectives and driving the expansion of carbon markets. By channelling investments into nature-based solutions alongside green bonds, you not only mitigate your environmental footprint but also capitalise on the burgeoning carbon market, positively influencing the natural world.
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