TY  - GEN
AU  - Martínez Álvarez, Juan
AU  - Ortega Andrade, Adrián
AU  - Corbella, Montserrat
TI  - Risk Mitigation Mechanisms for Local Investment: The Role of Subnational Development Banks
PY  - 2024
Y1  - 2024/05/09
DO  - 10.18235/0012958
AB  - Subnational development banks (SDBs) in Latin America and the Caribbean (LAC) provide financing to regional and local governments, subnational entities, and small and medium enterprises (SMEs), but generally lack information about how they can support the transition toward net-zero greenhouse gas emissions and environmental sustainability. This document describes how SDBs can support blended financing arrangements that combine both public and private resources, leveraging their comparative advantage in mitigating the high risks that private lenders perceive of working with actors at the subnational level. The document provides illustrative cases from both regional and international contexts of how public development banks can mobilize private capital for local economic development. It concludes with strategic recommendations for SDBs to increase sustainable financing for a just urban and territorial transition and for the Alliance of Subnational Development Banks in Latin America and the Caribbean as a platform to foster a regional dialogue that can increase financial innovation across the region.
UR  - https://doi.org/10.18235/0012958
ER  -