Financing Sustainable Infrastructure in Latin America and the Caribbean: Market Development and Recommendations

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Reymond, Aymeric;
Egler, Hans-Peter;
Masullo, Débora;
Mar 2020
Frisari, Giovanni Leo; Gallardo, Matías
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).