Financing for Climate Friendly Investment

EcoMicro

In spite of demonstrated need and demand throughout Latin America and the Caribbean, many micro, small, or medium-sized enterprises are not able to access funding for clean energy or energy efficiency technologies that could reduce energy costs and improve competitiveness.

The introduction of green microfinance in Latin America is a ground breaking innovation because it enables these enterprises to access climate finance for the first time. EcoMicro is building the capacity of the region’s microfinance institutions so that they have the appropriate tools and knowhow to develop and offer green financial products that help clients address climate change.

ECOMICRO IN NUMBERS

microfinance institution in Nicaragua

Fondo de Desarrollo (FDL) is a microfinance institution in Nicaragua. It delivers credit services to rural areas of Nicaragua and has a significant presence in urban areas, providing services to micro and small enterprises, mostly led by women. FDL is developing a project that will allow 300 smallholder farmers to invest in climate change adaptation practices. FDL is also partnering with a local insurance provider for the micro insurance component of its green finance product.

Country: Nicaragua
Target beneﬁciaries of pilot: Smallholder farmers in the western region of Nicaragua
Green Product: Adaptation
Phase: Execution

GREEN FINANCING BY TE CREEMOS

Te Creemos is a Mexican financial institution that helps its customers and community go green. It has partnered with a Mexican social enterprise, which provides solar energy to rural communities with limited access to electricity. Te Creemos designed a green finance product that gives rural clients access to solar home systems and smaller solar devices. Te Creemos is also reducing its own energy costs by contracting with local solar energy providers.

Country: Mexico
Target beneﬁciaries of pilot: Micro and small enterprises in Sonora and Chiapas
Green Product: Energy Efficiency and Clean Energy
Phase: Execution

GREEN LOANS IN CAJA AREQUIPA

Caja Arequipa in Peru provides green finance for clean energy and energy efficiency to more than 5,200 micro and small enterprises. It offers comprehensive, flexible and appropriate financial solutions in a profitable, sustainable and socially responsible manner. Caja Arequipa has partnered with a local clean energy provider to develop its green financial product targeting Peruvian micro, small, and medium enterprises.

Country: Peru
Target beneﬁciaries of pilot: Micro and small entrepreneurs
Green Product: Energy Efficiency and Clean Energy
Phase: Execution