The Inter-American Development Bank (IDB) launched ReInvest+, a new program to turn existing climate loans into investment products that Wall Street will actually buy. The initiative aims to unlock private money for climate projects in developing countries that desperately need $1.3 trillion yearly to fight climate change. IDB Group President Ilan Goldfajn said the bank is “flipping the script” instead of asking investors to change their risk appetite. The program launched in partnership with SB COP and Brazil’s COP30 Presidency. ReInvest+ will buy proven climate loans from local banks and package them into investment-grade securities that global investors want.
Developing countries can’t get enough private investment for climate projects because investors prefer safe, rated securities in hard currencies like dollars. Most climate projects are early-stage, unrated, and in local currencies that scare off institutional investors. Public money can only cover a tiny fraction of what’s needed.
“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,” Goldfajn said.
The program starts with performing loans already on local banks’ books, then converts them into investment-grade securities using portfolio insurance. Banks must commit to reinvest proceeds into climate-aligned projects, creating a cycle of new lending.
IDB estimates about $500 billion in suitable loans exist across Latin America and the Caribbean, part of a global pool that could exceed $3 trillion. Commercial and international banks can submit proposals by October 24 to join the initiative.
The program aims to help countries scale climate financing like never before by making projects go “where the money is” instead of trying to drag money to risky projects.
