By Miguel de la Vega PolancoThe private sector in Peru and Latin America must focus on financing infrastructure for adaptation and resilience to address the impact of natural phenomena, such as El Niño, stated Diego Flaiban, Director of the Financial Sector at BID Invest.
He made these remarks during the 60th Annual Assembly of the Latin American Federation of Banks (Felaban 2026), currently taking place in Peru.
“Green and mitigation financing have been developing for many years; what we need now is to focus more on adaptation and resilience, because climate-related effects are impacting us all—especially in countries where agribusiness plays a major role in the economy,” he told the Andina news agency.
“We must find investment alternatives that mitigate these climate and physical risks, and reduce the vulnerability of companies—for example, through investments in resilient infrastructure,” he said.
“How can we encourage banks or governments to begin financing these infrastructure investments to reduce climate risk?” he emphasized.
Furthermore, he noted that a report by BID Invest indicates that one-third of companies in the Latin American region are prepared and have strategies in place for climate resilience and adaptation.
“The remaining two-thirds are the issue; companies need to take this seriously, and investors must start demanding action from them. Climate impact is a problem that could bring business operations to a halt—not just in agribusiness, but in the tourism sector as well,” he said. “Climate events put businesses on hold, as floods can reduce their revenue flow capacity,” he added.
In this regard, he emphasized that there is a need to develop clear sustainability strategies.
“The role of banks is to make the necessary investments and adapt their financial products to the requirements of these investments—which are often long-term, whereas banks typically provide short-term financing. So, it is a challenge of both duration and scale,” he stressed.
He also noted that Latin America faces a significant infrastructure deficit.
“At the IDB, we finance infrastructure projects, while through IDB Invest, we support the private sector entities that participate in those projects. There is a massive need for infrastructure financing,” he stated.
Furthermore, he pointed out that Latin America has a historic opportunity, as it is self-sufficient in many resources—a fact that makes the region vital to the rest of the world.
“Consequently, investments will inevitably follow. Peru, in particular, is a leader in many inputs for agribusiness and mining; there are numerous opportunities that companies will surely want to capitalize on,” he said.
“There is a clear opportunity to attract and leverage these investments. Naturally, governments and multilateral institutions must work together to make the region more appealing to investors—and I believe we are succeeding in that,” Flaiban emphasized.
He noted that there is significant interest in the region, driven by resources such as copper, gold, and silver—minerals that are critical to the global energy transition.
“Local banks lack the capacity to finance such large-scale projects. Through IDB Invest, we are collaborating with local banks, as they are the ones that will support local value chains, as well as major mining and agricultural projects,” he explained.
Finally, he mentioned that many large corporations are now beginning to require their value chain partners to meet specific environmental standards.
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Published: 11/5/2026