Austria Contributes €1M to IDB’s NDCs Pipeline Accelerator Fund for Climate Action

The ACL, established in 2017, has become a key fund for financing climate-positive investments and mobilizing capital in collaboration with both public and private sectors.

The Federal Ministry of Finance of Austria has pledged €1 million to the Inter-American Development Bank’s (IDB) Nationally Determined Contributions (NDCs) Pipeline Accelerator Trust Fund (ACL), bolstering efforts to support climate action in small and vulnerable nations. This contribution will enhance the ACL's focus on climate adaptation, nature-based solutions, and sustainable economic practices such as the circular economy, blue and green economies, and e-mobility while ensuring gender equality and inclusion are central to its strategies.

The ACL, established in 2017, has become a key fund for financing climate-positive investments and mobilizing capital in collaboration with both public and private sectors. With over $37.5 million raised from international donors like the Netherlands, Sweden, Finland, and Austria, the ACL has already allocated $25.3 million to 72 technical cooperation projects. These efforts have helped secure $4.75 billion in lending for climate-positive initiatives in Latin America and the Caribbean.

A significant part of the fund's impact is its support for pioneering projects, including development of electric mobility and green hydrogen in the region, sovereign green and sustainability-linked bond markets, and innovative financial mechanisms like debt-for-nature swaps.

In Honduras, the ACL has worked on promoting sustainable mangrove management, supporting small producers and MSMEs in fishing, aquaculture, and tourism, while improving their access to financing. This initiative is helping to strengthen coastal biodiversity and the livelihoods of indigenous communities, especially women, through better resource management and sustainable operations.

The addition of Austria’s €1 million contribution will ensure that the ACL continues to drive climate resilience and sustainable development, reinforcing the IDB’s climate change strategy and providing vital support for countries facing the greatest challenges in adaptation and mitigation.