Financing Sustainable Infrastructure in Latin America and the Caribbean: Market Development and Recommendations
Date issued
Mar 2020
Subject
Infrastructure Investment;
Sustainable Infrastructure;
Climate Change;
Renewable Energy;
Finance;
Investment Fund;
Financial Bond
JEL code
O16 - Financial Markets • Saving and Capital Investment • Corporate Finance and Governance;
G18 - Government Policy and Regulation;
G00 - Financial Economics: General: General
Country
Brazil;
Colombia;
Mexico;
Peru;
Argentina;
Chile
Category
Catalogs and Brochures
Sustainable infrastructure investments in Latin America are still far from being mainstreamed, potentially jeopardizing progress towards the countries SDGs. Looking at 6 countries (Argentina, Brazil, Chile, Colombia, Mexico, and Peru), this paper investigates the effectiveness of existing public and private sector investment vehicles in infrastructure projects, in particular through capital markets. The report overall collects information of 55 different instruments across the 6 countries and compiles a set of conclusions and recommendations both policymakers and investors could use. In most countries, capital markets instruments are ready, but often lack clear taxonomies and rules to channel sustainable investments (Brazil, Mexico, Peru); elsewhere a revision of investment regulations for pension funds, and/or for PPP investments could unlock significant investors demand for sustainable assets (Argentina, Chile, Colombia).