BELÉM, Brazil — The Inter-American Development Bank (IDB), Impact Fund Denmark, the Norwegian Agency for Development Cooperation (Norad), and the Swedish International Development Cooperation Agency (Sida) have signed a letter of intent to establish a new guarantee expected to unlock approximately $800 million in additional lending capacity for clean-energy projects under the Amazonia Forever and América en el Centro regional programs.
This new funding will allow the IDB to expand investments across the Amazon region and Central America by supporting projects that improve energy access, modernize transmission and distribution networks, promote clean electricity systems, advance sustainable transport, scale clean cooking solutions, increase energy-storage capacity, and strengthen emerging clean technology sectors.
The IDB has previously used risk-transfer guarantees to mobilize development financing. In 2021, a $100 million transaction with Sida unlocked funding for projects focused on poverty alleviation, climate resilience, and women’s empowerment in Bolivia, Colombia, and Guatemala. In 2024, a second $250 million guarantee with Sida enabled an additional $469 million in lending for the Amazon region under Amazonia Forever.
The proposed new guarantee, involving Impact Fund Denmark, Norad, and Sida, is expected to further enhance the IDB’s regional programs, strengthen partnerships with these European countries, and advance the IDB Group’s Institutional Strategy by mobilizing additional resources through innovative risk-sharing and balance-sheet optimization.
IDB Group President Ilan Goldfajn highlighted the importance of the collaboration, noting that the new credit-substitution guarantee is the third with Sida and the first with Impact Fund Denmark and Norad, emphasizing its role in mobilizing financial resources to strengthen energy security, resilience, and inclusive growth in Amazonia and Central America.
Lars Bo Bertram, CEO of Impact Fund Denmark, underscored that such guarantees act as catalysts for climate action, showing how financial risk-sharing can accelerate green investments while protecting biodiversity and supporting local communities.
Norwegian Prime Minister Jonas Gahr Støre emphasized that this first guarantee under the Norwegian Sovereign Guarantee Scheme will significantly boost renewable energy investments in the energy-poor Amazon region, producing positive social, environmental, and economic outcomes.
Sida’s Assistant Director General Kjell Forsberg noted that combining the guarantee mechanisms of Sweden, Norway, and Denmark demonstrates how innovative financial instruments can amplify development impact, unlocking substantial lending capacity for sustainable investments in the Amazon while aligning with climate and development goals.
