The Inter-American Development Bank (IDB), Impact Fund Denmark, the Norwegian Agency for Development Cooperation, and the Swedish International Development Cooperation Agency have signed a letter of intent toward establishing a new guarantee that is expected to unlock approximately $800 million in additional IDB lending capacity for clean-energy projects, the IDB announced. The partnership will target the Amazonia Forever and América en el Centro regional programs. This additional capacity will allow the IDB to scale investments across the Amazon region and Central America by supporting projects that expand 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 a strong track record of risk-transfer guarantees. In 2021, a $100 million transaction with Sida unlocked funding for projects focused on poverty alleviation, climate resilience, and support for women in Bolivia, Colombia, and Guatemala. This was followed in 2024 by a second $250 million guarantee with Sida that unlocked $469 million in additional lending for the Amazon region under Amazonia Forever. The proposed new guarantee is expected to further bolster the IDB’s regional programs and deepen collaboration with Denmark, Norway, and Sweden.
“We are glad to work closely with Sida, Impact Fund Denmark, and Norad towards a new credit-substitution guarantee—our third with Sida and our first with Impact Fund Denmark and Norad,” said IDB Group President Ilan Goldfajn. “Through innovative financing, we are facilitating the mobilization of financial resources to strengthen energy security, resilience, and inclusive growth in Amazonia and Central America.” Lars Bo Bertram, CEO at Impact Fund Denmark, described guarantees as powerful catalysts for climate action, noting that the collaboration shows how innovative financial risk-sharing models can accelerate green investments where they matter most.
“The Amazon region—where Norway has been the most important partner for rainforest conservation during the last 15 years—is extremely energy-poor,” said Jonas Gahr Støre, Prime Minister of Norway. “This guarantee will address that by enabling close to $800 million in renewable investments, with significant positive effects for the people, environment, and economic development.” Kjell Forsberg, Assistant Director General and Head of the Department for Trade, the Private Sector, and Financial Instruments at Sida, said the partnership demonstrates how innovative financial instruments can multiply development impact.
The guarantee mechanism works by mobilizing additional resources through balance-sheet optimization and innovative risk-sharing with partners. By combining Sweden’s, Norway’s, and Denmark’s guarantee mechanisms, the partnership helps unlock substantial new lending capacity for sustainable investments in the Amazon and Central America, aligning financing with both climate and development goals. The deal represents the first guarantee under the Norwegian Sovereign Guarantee Scheme.
