IDB and C40 Cities Sign Pact to Accelerate Climate Action and Urban Resilience in Latin America and the Caribbean

Partnership to Boost Sustainable Urban Development, Expand Financing Access, and Advance Circular Economy Initiatives Across LAC Cities.

The Inter-American Development Bank (IDB) and the C40 Cities Climate Leadership Group (C40) have signed a landmark agreement to intensify joint climate action and enhance credit accessibility for cities across Latin America and the Caribbean (LAC). This partnership, formalized by IDB President Ilan Goldfajn and C40 Executive Director Mark Watts, was witnessed by Freetown Mayor Yvonne Denise Aki-Sawyerr during the Urban20 Summit in Rio de Janeiro.

Advancing Urban Climate Resilience

The Memorandum of Understanding marks a new phase in collaboration between IDB and C40, focusing on sustainable urban development, clean transport, and the circular economy. The three-year agreement introduces transformative initiatives aimed at improving municipal finance, promoting innovative climate solutions, and bolstering resilience against extreme weather events increasingly impacting LAC cities.

“Cities must be at the forefront of resilience-building efforts,” said Mr. Goldfajn. “With this partnership, we are fostering knowledge sharing, technical assistance, and innovative solutions to help cities adapt and thrive in the face of climate challenges.”

Mr. Watts added: “Cities in Latin America and the Caribbean are pioneering innovative climate strategies. This partnership will ensure they gain access to critical financing and resources to implement sustainable solutions, from clean transport to equitable urban development.”

Key Initiatives Under the Agreement

The agreement focuses on eight flagship projects, including:

Regional Roadmap for Subnational Finance: Empowering municipalities to access funding for climate-resilient projects.

Electromobility Knowledge Dissemination Initiative: Promoting clean and sustainable public transport systems.

Green and Thriving Neighborhoods Pilot Projects: Advancing sustainable urban design in low-income areas.

Zero Emissions Freight Financing: Reducing pollution in urban freight operations.

Solid Waste and Circular Economy Hub: Supporting cities in adopting waste management and recycling solutions.

Scaling Access to Finance for Cities

Recognizing the critical role of financing, the IDB will work with cities to develop a pipeline of projects, improve municipal creditworthiness, and foster peer-to-peer learning. Enhanced credit access will allow cities to fulfill current obligations while also investing in long-term climate resilience.

The Mayors and Secretaries of Finance Forum at the Urban20 Summit served as a platform to discuss the agreement and highlight success stories. For example, cities like Bogotá and Buenos Aires shared insights from their clean air initiatives, while smaller municipalities expressed a need for tailored financial instruments.

Broader Implications and Next Steps

The IDB and C40 partnership aligns with global climate goals and underscores the importance of collective action. Action plans under the agreement will involve regional workshops, pilot projects, and the creation of tools for monitoring and evaluation. These efforts will enable cities to track progress effectively and share best practices.

Mayor Aki-Sawyerr noted the agreement's significance, saying, “This partnership demonstrates that collaboration between cities and international organizations can create scalable solutions to address the pressing challenges of climate change.”

As urban areas in Latin America and the Caribbean face mounting environmental and socioeconomic pressures, this historic partnership aims to ensure that cities are not only more sustainable but also more inclusive and resilient for future generations.