Sustainable Finance in Latin America
 

The Biennial IBA Latin American Regional Forum Conference: The Road to 2030 in Latin America brought together leading lawyers and experts from the region in Lima to discuss key issues related to the economic, social, political and legal development of Latin America.

On March 22, 2025, during a breakout session on Sustainable Finance, moderated by Maria Victoria Funes (Bomchil, Buenos Aires) and Rodrigo Rivera Santamarina (Galicia Abogados, Mexico City), an expert panel came together featuring Ricardo Binnie (Pinheiro Neto Advogados, São Paulo), Andrea Diaz Torrealba (Morales & Besa, Santiago), Alejandro A. Gordano (A&O Shearman, New York City), and Ekaterini Kidonis (Santander, Lima). They engaged in a thought-provoking discussion on the growing role of sustainable finance in Latin America as a key tool for achieving the United Nations Sustainable Development Goals (SDGs).

The panellists explored the evolving regulatory landscape, innovative financial instruments such as green, social and sustainability-linked bonds, and the increasing involvement of traditional financial institutions in the ESG-driven market. Key topics also included the impact of international standards on local markets, the need for a common taxonomy, the importance of transparency in disclosure practices and market incentives.

A key takeaway from the session was that sustainability is no longer a niche concept since it has become a central focus of global financial markets and that Incentives for investor are still not so clear so it would be good to have more clear incentives to foster this kind of financing. On the other hand, the US and Europe are taking quite different paths and the panellists agree that it is hoped Latin America will follow Europe’s trend in adopting strong sustainability frameworks. As sustainable finance continues to evolve, its impact on investment decisions, regulatory developments, and financial innovation will be crucial in shaping the future of the region.

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