GLASGOW, Scotland — Trillions of dollars worth of green investments are coming, and Inter-American Development Bank (IDB) President Mauricio Claver-Carone tells Axios he’s “in a race” to secure a big slice of the pie for Latin America and the Caribbean.
Why it matters: Climate change is causing droughts and extreme weather across the region, which in turn drive migration and threaten the food supply from the “bread basket of the world,” Claver-Carone said in an interview at the COP26 climate summit.
- The region needs action on climate change, he tells Axios, and it also needs some of the billions or even trillions of dollars coming available to finance it.
The big picture: The numbers involved are both mind-numbingly large and vaguely defined.
- A coalition of financial institutions announced Wednesday at the summit that they would mobilize up to $100 trillion in investments by 2050 to help countries reach “net zero” emissions.
- Claver-Carone cites a different number: the $53 trillion in assets Bloomberg Intelligence expects to be committed to Environmental, Social, and Corporate Governance (ESG) by 2025.
- “If I get 10%, that’s $5.3 trillion, the size of Japan’s GDP — we just transformed the region from an investment perspective,” he says.
Between the lines: ESG and “net zero” investments are ill-defined and notoriously opaque. “Sometimes it can be a bit of a scam,” Claver-Carone said.
- But the investor demand is clearly there, and the IDB is taking…