Increasing Climate Finance Calls for More and Better Impact Reporting

This resource discusses the importance of building the impact measurement and management capacities of financial institutions in Latin America and the Caribbean to boost climate finance flows in the region. Key learnings include: - Latin America and the Caribbean (LAC) is one of the regions in the world most affected by climate change, yet climate finance flows in LAC lag behind other regions. - The magnitude of the climate financing gap requires financial institutions (FIs) to increase green lending activities. - There is a clear business case for FIs to operate in this space, including seizing new business opportunities and reducing risk. - Rigorously measuring impact brings additional benefits for FIs such as demonstrating alignment to global initiatives, strengthening reputation and branding, and attracting investors. - IDB Invest is helping FIs build capacity to better serve the green segment and measure the impact of these activities.