ReInvest+ Launched to Mobilize Trillions for Climate Action in Developing Nations

The Inter-American Development Bank Group (IDB Group), in partnership with the Sustainable Business COP30 initiative (SB COP) and the Brazilian COP30 Presidency, has unveiled ReInvest+, a groundbreaking financial initiative designed to unlock private capital at scale for climate mitigation and adaptation projects in developing countries. The launch signals a shift in global climate finance strategies, aiming to bridge the gap between the vast resources of institutional investors and the urgent needs of climate-vulnerable nations.

The Urgency of Climate Financing

Developing countries outside China require an estimated $1.3 trillion annually to strengthen resilience against climate shocks and transition toward low-carbon growth. Yet, public financing accounts for only a fraction of this figure. While international commitments have highlighted the need for climate investment, private capital inflows remain limited. Institutional investors have historically preferred investment-grade, hard-currency assets, leaving early-stage, locally denominated climate projects underfunded.

IDB Group President Ilan Goldfajn emphasized the shift in approach:

“Until now, we have asked institutional investors to change their risk appetite to invest in projects in developing countries. That approach has proven too costly and unscalable. With ReInvest+, we are flipping the script.”

Instead of expecting investors to assume new risks, ReInvest+ will convert local loans with proven track records into global securities, creating new space for financing local development projects while channeling private capital into regions that need it most.

Strategic Steps of ReInvest+

ReInvest+ is structured around four key steps that align local financing needs with global market expectations:

1. Start with seasoned loans – The initiative targets performing, approved, and completed projects already financed by local banks. According to IDB estimates, there is a pool of $500 billion in such loans across Latin America and the Caribbean, contributing to a global pool potentially exceeding $3 trillion.

2. Convert loans into investment-grade securities – These loans will be bundled, diversified, and supported by commercially priced insurance to mitigate political and foreign-exchange risks. The result: securities that meet the standards institutional investors seek.

3. Recycle capital through conditionality – Local banks will only sell loans if they commit to reinvesting proceeds in sectors aligned with national climate strategies and NDCs (nationally determined contributions). This ensures that institutional investments feed directly into climate action and sustainable growth.

4. Empower local banks – By placing local banks at the center of the reinvestment cycle, the initiative creates a self-reinforcing loop where banks identify, fund, and scale climate-aligned opportunities, fostering local ownership and long-term impact.

Global Partnerships and COP30’s Role

The Brazilian COP30 Presidency, under Ambassador André Corrêa do Lago, has welcomed ReInvest+ as a key milestone for climate diplomacy:

“One of the successes I hope COP30 will be remembered for is precisely the issue of climate financing. ReInvest+ helps fill these gaps, showing how finance can contribute to climate solutions.”

The SB COP leadership echoed the sentiment. Luciana Ribeiro, chair of transition finance and investments at SB COP, noted:

“With ReInvest+, we are not just supporting the implementation of innovative financing models for the transition to a low-carbon economy, but actively driving it. Our focus is catalyzing private-sector leadership so that capital is mobilized at scale.”

To achieve its ambitious goals, the IDB Group has launched a call for proposals from commercial and international banks, with submissions due by October 24. Selected partners will be announced at COP30 in Belém, Brazil, where IDB and its private arm, IDB Invest, will detail their commitments to purchase assets over the next 12 months.

Building on Global Roadmaps

ReInvest+ aligns with the $1.3 trillion Baku to Belém Roadmap, a framework focused on redesigning financial flows between public and private sectors to address development, climate, and nature challenges. The initiative underscores IDB’s role as a neutral convener and innovator, offering transparent criteria, oversight, and financial technologies such as foreign exchange portfolio insurance.

The model aims not only to scale climate financing in Latin America and the Caribbean, but also to set a precedent for other regions struggling to access private climate finance. By channeling global liquidity into sustainable projects, ReInvest+ could accelerate the transition toward resilience and net-zero targets.

Looking Ahead

ReInvest+ represents a major attempt to bridge the disconnect between where money currently flows and where it is most urgently needed. If successful, the initiative could transform billions of dollars in local loans into trillions in global investments, ensuring that developing nations can finance their path to sustainable growth without being sidelined by market barriers.

As COP30 approaches, ReInvest+ stands as a flagship initiative that could reshape climate finance architecture, blending innovation, inclusivity, and scale to meet the challenges of a warming world.