In a groundbreaking move, BBVA Colombia, in partnership with the International Finance Corporation (IFC), is set to issue the financial sector’s first biodiversity bond. The bond, totaling $50 million, will fund a range of vital projects aimed at preserving Colombia’s extraordinary natural heritage.
The funds will be directed towards initiatives including reforestation, the regeneration of natural forests on degraded land, mangrove conservation, climate-smart agriculture, and wildlife habitat restoration. Alongside the financial investment, advisory services will be provided to establish the eligibility criteria and performance indicators, promoting best practices in sustainable natural resource management.
Mario Pardo, BBVA Colombia’s Country Manager, highlighted the importance of this initiative, saying, “Colombia is the world’s most biodiverse country per square kilometer, and this is a huge responsibility for those of us who live here. Our mission is to preserve this biodiversity. This initiative, in collaboration with IFC, represents our commitment to biodiversity and climate adaptation, and also offers social and economic development opportunities.”
Colombia’s rich biodiversity is impressive, housing 14% of the world’s known plant species and close to 4,500 bird species, making it the country with the greatest bird diversity globally. In 2023, BBVA in Colombia allocated three billion pesos for environmental conservation, marking nearly a 40% increase from the previous year.
Alfonso García Mora, Vice President of the IFC for Europe, Latin America, and the Caribbean, commented, “Supporting conservation projects helps mitigate climate change and safeguard biodiversity. This biodiversity bond has the potential to significantly enhance financing for initiatives that conserve, restore, and protect biodiversity in Colombia.”
This biodiversity bond represents a pioneering step towards integrating sustainable finance with environmental stewardship, setting a precedent for future initiatives in the financial sector.
