Deadline: 15-Jun-2024
The Inter-American Development Bank (IDB), through its innovation laboratory, IDB Lab and in partnership with Green Climate Fund (GCF) seeks to support overcome technical, financial, and knowledge barriers faced by innovative bio-businesses in the Amazon Basin capable of supporting the reduction of Green House Gas (GHG) emissions and increase the resilience of targeted value chains and ecosystems in the Amazon region.
The green investment sector has been growing rapidly since 2015, with increased capital and investments in the bioeconomy. However, bioenterprises are not yet ready to absorb the available investment due to various constraints, such as capacity problems, technology deficits and inadequate access to markets. There is an opportunity to transform the Amazon economy towards inclusive and sustainable growth by supporting business models that use natural capital and forest assets sustainably.
The Amazonian private sector has a unique opportunity to benefit from the financial support available to continue carrying out an adequate management of renewable natural biological resources with innovative technologies and processes that follow the bioeconomy approach. Potential investments could focus on:
- Advisory and extension services in good business practices, growth strategy, marketing and logistics,
- Measurement and monitoring systems for socio-environmental impacts.
- Alignment with international standards and norms (including the adoption of certifications).
- Technological updating in priority value chains.
- Access to local and international markets.
- Development of commercial agreements with anchor companies.
- Bioprospecting.
- Identification of regulatory challenges, among others.
This challenge is aligned with the IDB Group’s commitment to support greener economies in the Latin American and Caribbean region to respond to the challenges of the climate crisis, the loss of biodiversity, and related environmental problems.
Objectives
The proposed solutions must demonstrate:
- Contribution to the reduction of GHG emissions and increase resilience of targeted value chains and ecosystems in the Amazon region.
- Alignment to the definition of Bio-business, bioeconomy, and bio-business investment.
- Impact in IDB Lab target groups geographically located in the Amazon basin in any of the target countries, i.e. poor, low-income, and vulnerable population segments, local indigenous and afro-descendant populations or peasant communities, and emerging economic units, including SMEs with innovative business models.
Sectors
- Perennial agriculture
- Agroforestry
- Aquaculture
- Forestry plantations
- Non-timber natural forest products,
- Nature-based tourism
- Other ecosystem services
Types of Financing Available
- Applicants can present their applications and apply for non-reimbursable technical assistance in the order of US $250,000, to a maximum of US $500,000 each. Resources will be channeled through individual projects to be approved by IDB Lab.
Awards
- Financing: IDB Lab may consider the applicants whose proposals are selected to receive financing to implement the proposed business model in one or various of the six target countries.
- IDB Lab Innovators Network: Selected applicants will be included among IDB Lab’s network of global innovators working in LAC to exchange knowledge, experiences, best practices, and may have opportunities to participate in networking events organized by the IDB Group and its partners.
- Selected applicants will receive IDB Lab/IDB and/or GCF funding once:
- The proposed business model has been duly analyzed and evidence obtained of its viability.
- The applicant’s experience in the sector, capacity to manage financial resources and project execution experience have been evaluated.
- Availability of or ability to mobilize counterpart resources has been demonstrated; and,
- A legal written agreement to use IDB Lab/IDB and/or GCF funding and counterpart resources towards the implementation of the selected model/project has been signed by both parties (IDB/IDB Lab and applicant selected through the analysis process).
Who can apply?
- Legally established entities such as: (i) early stage private companies (including startups) eligible to receive non-reimbursable financing from the Bank, may be individual structures, associative structures (cooperatives or similar structures), and ‘anchor’ companies belonging to bio-business value chains; or (ii) entities that support entrepreneurship and/or innovation, such as innovation agencies, accelerators, producer associations, knowledge institutions, and others that can demonstrate alignment with the project objectives.
- If your organization is legally registered in one of the six target countries where the project will be implemented, you can apply to the Challenge.
- If your organization is legally registered in one of the 48 members countries of the IDB Group, other than one of the six target countries where the project will be implemented, you may apply only in partnership with an organization registered and located in one of the six target countries where the project will be implemented.
For more information, visit Inter-American Development Bank (IDB).