Amid an international landscape marked by political uncertainties, new tariffs, migratory pressures in the U.S. and Europe, and increasing volatility in financial markets, the Dominican Republic hosted a vital conversation on the future of finance: the III LATIN AMERICAN CONGRESS ON SUSTAINABLE AND INCLUSIVE BANKING, held on May 14 and 15.

I had the privilege of participating as an attendee in this space that brought together regulatory authorities, multilateral organizations, leading banks and private sector actors to address the challenges and opportunities of integrating sustainability at the heart of the Dominican and regional financial system.

Economic Uncertainty and Financial Volatility: An Imminent Risk

One of the most discussed topics was the growing financial vulnerability resulting from high global volatility. Interest rates, forced deleveraging, margin calls and the sale of lower-rated assets are affecting market stability, while the participation of foreign investors in Latin America has decreased significantly. This raises systemic risk by increasing VaR (value at risk) and forcing the sale of assets at depressed prices.

There was also a warning about the high level of public debt and the increase in risk premiums, together with a growing probability of abrupt depreciations in emerging markets. All this represents a direct threat to the financing of the non-financial private sector, whose financing gap is already negative.

Sustainability as a Strategic Pillar: more than a fad, a necessity

Fortunately, the focus of the Congress was to look beyond the current situation and promote solutions. Sustainability is no longer a peripheral issue: it is consolidating as a strategy for business, regulatory and financial transformation.

Keynote speakers such as Marcela Ponce (IFC – World Bank Group) addressed how climate finance, public sector regulation and energy transition are intertwining with business strategies. Businesses are being called upon not only to adapt, but to lead the transition to a low-carbon and resilient economy.

Thematic Bonds: the future of finance

The diversity of sustainable financial instruments was one of the most fascinating aspects of the congress. There was talk of:

  • Green bonds: mostly targeting renewable energy (52%), construction (6%), land use (10%) and water (5%).
  • Social bonds: focused on equity, health, education and housing.
  • Sustainable bonds: combining social and environmental objectives.
  • Blue bonds: linked to the sustainable ocean economy, with applications in tourism, fisheries, water treatment and management, port logistics, among others.
  • Biodiversity bonds: addressing critical sectors such as food, transportation, energy and fashion, and aimed at better land use and conservation.

Latin America, with a third of the world’s nickel and silver reserves, has a unique leadership opportunity, especially in sectors such as renewable energy.

Landmark Launch: A Practical Guide to Thematic Bonds

One of the major milestones of the event was the launch of the Practical Guide to Thematic Bonds in the Dominican Republic, developed by the Superintendency of Banks, the ABA, the Stock Exchange, the Ministry of the Environment and GGGI. The announcement was accompanied by information on the recent issuance of the first Dominican green bond, presented by Armando Patiño Henríquez.

As Olga Nivar pointed out, this guide is the result of more than 25 working sessions, including public consultations, and represents a catalyst to mobilize capital towards productive sectors with a sustainable approach.

From Commitment to Action: Case Studies

Cases such as Banco del Caribe, presented by Edgar del Toro and Hugo Villanueva, demonstrated how banks can lead from within: branches with clean energy, products designed with ESG criteria, and internal cultural transformation that turns sustainability into a real competitive advantage.

Other leaders such as Cristina Bello (Banco BHD), Luis Alejandro Mejía, Francisco García (Banco Popular) and Gonzalo Gil (Scotiabank) highlighted the importance of understanding bond frameworks, having SPOs (Second Party Opinions) and diversifying funding as a way to grow with purpose.

Watershed Strategies and the Circular Economy

In the Caribbean, blue bonds are seen as a promising instrument to protect key sectors and address physical risks associated with climate change: from asset loss in coastal zones to vulnerable tourism infrastructure. Also discussed was how to finance resilient solutions in housing, agriculture, culture, conservation and tourism with a circular economy approach.

A Culture of Sustainability

As one of the panelists rightly said, “Green is green,” alluding to the fact that sustainable is also profitable. The key is to build cross-functional teams that understand the benefits of ESG strategies, implement strong governance, align mission and vision with sustainability and, above all, create a corporate culture that sees sustainability as an integral part of the business.

Conclusion: the Caribbean as a catalyst region

The big lesson from the Congress is clear: for the Dominican Republic and the Caribbean region to continue moving towards a resilient, low-carbon economy, it is essential to mobilize private capital, create robust regulatory frameworks and foster financial innovation.

Already, we are seeing how the country is articulating public policies, banking, foreign investment and international organizations to strengthen its sustainable finance system. This is a historic opportunity that we cannot afford to miss.