EIB and CAF Forge Strategic Partnership to Mobilize Climate Finance in Latin America and the Caribbean

EIB and CAF Forge Strategic Partnership to Mobilize Climate Finance in Latin America and the Caribbean

(IN BRIEF) The European Investment Bank and CAF Development Bank of Latin America and the Caribbean signed a memorandum of understanding in Seville, pledging to deepen their cooperation on high-impact projects across Latin America and the Caribbean. Formalized by EIB President Nadia Calviño and CAF President Sergio Díaz-Granados, the agreement creates a strategic partnership framework—while maintaining each bank’s independence—to mobilize financing for climate mitigation, resilience, biodiversity, and environmental protection. The MOU outlines joint and parallel financing, guarantees, equity investments, advisory services, and knowledge exchange, with the option to tap EU and Member State grants through platforms like LACIF. A detailed roadmap will steer implementation and monitoring. Positioned as a flagship initiative of the EU’s Global Gateway strategy, this collaboration aims to close investment gaps, strengthen value chains, and drive the region’s green economic transition ahead of the CELAC-EU summit in Santa Marta.

(PRESS RELEASE) LUXEMBOURG, 30-Jun-2025 — /EuropaWire/ — During a high-level meeting with CELAC finance ministers and regional financial institutions ahead of FFD4 in Seville, the European Investment Bank (EIB) and CAF Development Bank of Latin America and the Caribbean inked a memorandum of understanding. EIB President Nadia Calviño and CAF President Sergio Díaz-Granados formalized the pact, which is designed to channel joint resources into transformative projects throughout Latin America and the Caribbean, with a strong emphasis on climate action and environmental sustainability under the EU’s Global Gateway framework.

This agreement elevates the EIB–CAF relationship from occasional coordination to a structured strategic partnership. While preserving each institution’s autonomy, it establishes a flexible cooperation model for scaling up sustainable investments and confronting development challenges region-wide. The memorandum lays out a collaborative toolkit—including parallel and joint financing, guarantees, equity stakes, advisory services, and knowledge sharing—and contemplates leveraging EU and member-state grants via platforms like the Latin America and Caribbean Investment Facility (LACIF).

Central to the partnership is a shared mission to finance initiatives that reduce greenhouse gases, bolster climate resilience, preserve biodiversity, and combat environmental degradation. The collaboration also seeks to strengthen regional value chains and accelerate the shift to green, inclusive economies. A clear implementation roadmap will guide project selection, resource mobilization, and progress monitoring, ensuring tangible advances toward sustainable growth.

As the CELAC-EU summit in Santa Marta nears, the EIB–CAF MOU stands as a concrete example of the Global Gateway’s investment-driven approach, demonstrating how European and Latin American institutions can unite to close development finance gaps and accelerate the region’s transition to a resilient, low-carbon future.

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SOURCE: European Investment Bank