Guatemala – Green growth and ESG opportunities

Ambitious sustainability agenda targets 80% renewable power by 2030

Guatemala is rapidly formalizing a sustainable finance framework to channel capital into renewable energy, water security and food systems.

 A landmark step came in February 2025 with the launch of BAC Guatemala’s first green bond, backed by IDB Invest, the French Development Agency and LAGreen. Green energy is a national priority. Guatemala already generates more than 60% of its electricity from renewables and is targeting 80% by 2030 by harnessing its significant hydro, solar, wind and biomass potential. Policy-led tenders are driving scale, led by PEG-5 – the country’s largest-ever power generation auction – launched in April 2025 to secure up to 1.4 GW of new capacity.

 

Sustainability is paired with inclusion under the K’atun: Our Guatemala 2032 development plan, which advances women’s economic empowerment, productive participation and resilient food systems tied to family farming and rural development. Flagship initiatives include the Food and Agriculture Organization–funded More Sustainable Petén program, which is directing around $57 million into the northern jungle region between 2023 and 2029 to support gender-focused interventions, sustainable forest management and tourism development.