In a significant step towards deepening international development cooperation, the European Investment Bank (EIB) and CAF Development Bank of Latin America and the Caribbean signed a memorandum of understanding today during a high-level meeting with Community of Latin American and Caribbean States (CELAC) finance ministers and financial institutions operating in the Latin America and the Caribbean region, in advance of the Fourth International Conference on Financing for Development (FFD4) held in Seville.
EIB President Nadia Calviño and CAF President Sergio Díaz-Granados formalised the agreement, which aims to enhance institutional collaboration and mobilise financing for high-impact projects across Latin America and the Caribbean. Central to the memorandum of understanding is the shared commitment to promote climate action and environmental sustainability, reflecting both institutions’ priorities and the European Union’s Global Gateway strategy.
From dialogue to strategic partnership
The signing of the memorandum of understanding marks a significant evolution in the relationship between the EIB and CAF, moving from ad hoc coordination to a more structured and strategic form of collaboration. The agreement is designed to turn shared ambitions into practical outcomes by expanding sustainable investments and tackling key development challenges across Latin America and the Caribbean.
The memorandum of understanding outlines a broad framework for cooperation that preserves the independence of each institution while building a foundation for deeper coordination, as it offers a flexible and scalable model for collaboration.
A shared vision for climate and development
The partnership’s central goal is to boost financing for projects aligned with climate action and environmental sustainability, specifically those that contribute to greenhouse gas mitigation, climate resilience, biodiversity preservation and the fight against environmental degradation. The cooperation will also aim to reinforce regional value chains and accelerate the transition to green, inclusive economies.
The memorandum of understanding envisions financial support through multiple instruments, including parallel and joint co-financing, loan guarantees, equity investments, advisory services and knowledge transfer. Both institutions will also explore the mobilisation of EU and Member State grants through platforms such as the Latin America and Caribbean Investment Facility (LACIF).
Looking ahead
The memorandum of understanding is supported by a clear and actionable roadmap that outlines specific steps for implementation and monitoring. Through this agreement, the EIB and CAF demonstrate a strong and unified commitment to promoting sustainable growth across Latin America and the Caribbean.
The partnership reinforces the practical objectives of the Global Gateway strategy, turning vision into investment-driven action. By formalising and expanding their collaboration, both institutions aim to mobilise significant financial resources, close investment gaps and accelerate the region’s transition to a greener and more resilient future.
Towards the CELAC-EU summit in Santa Marta, Colombia
The upcoming CELAC-EU summit in Santa Marta represents a new milestone in the strategic partnership between the European Union and Latin America and the Caribbean. It offers a key opportunity to highlight and give full value to the renewed agreement between the EIB and CAF, showcasing it as a tangible example of joint commitment to sustainable development, climate action and deeper regional integration under the Global Gateway framework.