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Case study

Lending targets lead to performance tracking at Inter-American Development Bank (IADB)

As part of its Ninth General Capital Increase (IDB-9) in 2010, the IDB introduced a set of lending priorities with quantitative targets.21 The third lending target established that, in 2015, 25 percent of loan approvals should address climate change, sustainable energy and environmental sustainability.
Key points
  • Lending targets are useful for establishing internal incentives.
  • The climate change lending target has contributed to strengthening vulnerability assessments and tools.
  • Climate finance is subject to strong inter-annual variations.