The inaugural Industrial Transformation Accelerator for Latin America and the Caribbean (ITA-LAC) brought industrial operators, technology providers, financiers and policymakers to Mexico City on July 8–9 to advance the region’s industrial transformation agenda.
Co-hosted by the World Bank Group and the IDB Group, organized by New Energy Events, and endorsed by Mexico’s Secretariat of Finance and Public Credit (SHCP), the event focused on how investment and industrial decarbonization can strengthen competitiveness, support sustainable growth, and create jobs across the region.
Following the event, we spoke with Robert Cerdan, Principal Investment Officer at IFC, about the key takeaways, emerging investment opportunities, and Latin America’s potential to become a more competitive hub for sustainable manufacturing.
What stood out to you at the inaugural ITA-LAC, and what distinguishes this type of platform from other industry forums seeking to accelerate industrial transformation across Latin America and the Caribbean?
The inaugural ITA-LAC event was a milestone for the region. It brought together, for the first time, a diverse group of government leaders, industrial companies, financiers and development institutions with the shared objective of accelerating industrial decarbonization in Latin America.
Beyond fostering dialogue, the event was anchored by the CIF’s Industrial Decarbonization program, which creates a tangible pathway from ambition to action in both Brazil and Mexico, focused on identifying real investment opportunities and connecting companies directly with implementing entities like the World Bank Group and IDB Invest.
This was not just about ideas but really about how to convert ideas into real projects, funded by these newly available resources.
One of the major announcements at ITA-LAC was the launch of the Climate Investment Funds’ Industry Decarbonization Program, with up to US$500 million allocated to support industrial decarbonization efforts in Mexico and Brazil. What signal does this send to private investors, and how can concessional finance help unlock larger-scale private investment?
It shows that beyond national policies and public initiatives already in place, Mexico and Brazil want the private sector to be a core partner in their decarbonization pathways, recognizing industry as a critical sector in the transition to a low-carbon economy and that industry can play a central role in development and jobs.
Concessional finance can play a catalytic role by addressing barriers that have slowed investment in industrial decarbonization, including technology risks, high upfront costs, and regulatory uncertainty. By reducing risks, it helps unlock medium- and large-scale investments that might not otherwise move forward, creating the incentive for the private sector to drive this impactful transformation while creating job opportunities.
Francisca Salas, Program Director for ITA-LAC at New Energy Events, pointed to a related reflection from the event. “One of the most interesting reflections came from David Razú Aznar, CEO of Afore XXI Banorte, who emphasized the need for a clearer financial architecture across multilaterals, commercial banks, and pension funds. His point was that each institution has a different role to play: multilaterals should be measured not only by how much capital they deploy, but by how much risk they are willing to take on new projects; commercial banks are generally focused on short- and medium-term returns; and pension funds are seeking long-term value without exposing their members’ savings to that risk. Getting that mix right is central to unlocking capital at scale for industrial transformation in the region.”
The World Bank Group has supported manufacturing and industrial projects across a range of sectors globally and throughout Latin America and the Caribbean. As you assess Brazil and Mexico’s industrial potential, what role do you think decarbonization can play in fostering sustainable growth, competitiveness, and job creation?
Job creation – more and better jobs – is a core priority for the World Bank Group. Our investments in decarbonization, green fertilizers, and biofuels, such as Sustainable Aviation Fuel (SAF), green methanol for shipping, and renewable diesel, as well as other innovative technologies have all contributed to creating new jobs, strengthening value chains and developing downstream ecosystems that support millions. At the same time, energy-intensive industries such as cement, iron and steel also display strong competitiveness when designing low-carbon strategies. In countries such as Mexico and Brazil, industrial decarbonization can unlock new growth markets, create new jobs, equip workers with new skills and improve competitiveness.
Discussions about industrial transformation often focus on decarbonization, productivity, and competitiveness. Why do you believe gender should also be at the center of this conversation?
Women’s participation needs to be central because industrial decarbonization will shape not only emissions reductions, but also who will benefit from the new jobs, skills, value chains, and investment it creates. In Mexico and Brazil, women remain underrepresented in the workforce, leadership and value chains in industrial sectors and face barriers linked to training, care responsibilities, workplace safety, transport, and career progression.
All investments under the CIF program will incorporate gender and social inclusion considerations, helping enhance women’s access to economic opportunities in both countries and ensuring the industrial transformation is more competitive, sustainable and inclusive. This is a key co-benefit of the program, fully in line with Mexico’s and Brazil’s national priorities.
The industrial transformation agenda is attracting growing interest from both public and private investors. How do you see the World Bank Group’s role evolving in helping bring impactful projects to market? Is there a recent or in-pipeline project that illustrates how the World Bank Group is helping bring these kinds of opportunities to market?
The World Bank Group can work on several levers. On the public side, through the ongoing support we provide to the governments of Brazil and Mexico on advancing reforms and implementing new policies that create the conditions for a low-carbon economy. On the private side, IFC is helping catalyze private capital and mobilize investment at scale.
The Brazil and Mexico programs have very ambitious private capital mobilization targets and our mission is to unlock all these sources of private capital towards the successful implementation of these projects. For example, in Brazil, the World Bank Group recently supported a highly innovative SAF project called Acelen Renovaveis, with a US$1.5 billion debt financing package. This is a major project that aims to position Brazil as a leading global hub for sustainable aviation.
Across Latin America, our project pipeline has several large-scale transformative projects similar to Acelen that demonstrate how private capital can come together to accelerate industrial decarbonization, drive economic growth, sustain competitiveness and ultimately create more and better jobs.
Looking ahead, what gives you the greatest confidence that Latin America and the Caribbean can become a more competitive hub for sustainable manufacturing over the next decade?
First, the reconfiguration of global value chains is creating new opportunities for nearshoring, with companies seeking reliable, geographically closer production hubs. Second, the green transition is increasing demand for the minerals, renewable energy, and low-carbon manufacturing capabilities that the region possesses in abundance. Third, digitization is making it easier and less costly for firms to participate in global markets, even in smaller economies.
Unlike previous commodity-driven cycles, this opportunity is structural.
LAC combines strategic location, abundant natural resources, a clean energy matrix, and growing policy momentum to attract sustainable industrial investment. If countries continue strengthening competitiveness and integration, the region is well positioned to become a leading hub for sustainable manufacturing in the decade ahead.
Maintaining the Momentum
Francisca shared that the most encouraging outcome was the level of practical engagement around real investment opportunities. “ITA-LAC showed that there is strong appetite across the region to move beyond ambition and focus on how projects can actually be structured, financed, and brought to market. The priority now is to maintain that momentum, continue connecting companies with the right public and private partners, and give the opportunities identified in Mexico City the time and support they need to develop.”
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