The initiative stems from the annual meeting of the Inter-American Development Bank in Belo Horizonte, Brazil, and sees the bank buying 11,000 Verified Emission Reductions from the Ecologica Institute. The funds will then be used to help finance a project substituting biodiesel for fossil fuels in Tocantins' Bananal Island.
During the four-year project, the biodiesel will be used to fuel pumps needed for small-scale irrigation, traction for agro forestry and energy production, assisting the region's small-scale farmers.
The program will also offset the carbon emissions of the 9,000 participants in the bank's annual meeting of the board of governors, resulting in a carbon neutral meeting made possible by the purchase of VERs.
"We are committed to doing all we can to address the issue of climate change in the region and provide sustainable development opportunities to local communities," said IDB President Luis Alberto Moreno. "We look forward to applying the same concept to other Bank activities."