Mexico, Costa Rica
Local project partner
Caja Popular Los Reyes,
German project partner
01.10.2021 - 30.09.2023
Climate change is one of the greatest global challenges. Developing and emerging countries in particular are often the most exposed to the consequences of climate change due to their geographical location and lower level of development. In addition, the high dependence on agriculture also represents a strong vulnerability in developing and emerging countries. They also face the challenge of transforming to a resource-efficient, low greenhouse gas and inclusive economy (green economy), with a focus on sustainability and climate change mitigation.
The financial sector plays a key role in climate change adaptation and mitigation, as necessary investments for the transition to a resource-efficient and low-GHG economy need to be financed. However, financial systems in developing and emerging countries are often not yet prepared for the new challenges. Local financial institutions often lack, among other things, experience in financing environmental and climate investments, the corresponding financial products, and experience in assessing and managing environmental and climate-related risks. To enable a transition to sustainable economies, financial systems need to be strengthened and environmentally and climate friendly investments promoted.
The overall objective of the project is financial system development to support the transition to a green economy in Costa Rica and Mexico. The project objective here is to strengthen financial institutions as catalysts of environment- and climate-oriented investments.
Within the scope of this project, Deutsche Sparkassenstiftung supports local financial institutions in the project countries in financing suitable investments in sustainable green technologies and in introducing innovative approaches to customer service. It also helps design and implement suitable products, such as loans, e.g. for investments in renewable energy, energy efficiency and better adaptation to climate change. A particular focus is on private households, small farmers and micro, small and medium-sized enterprises (MSMEs) operating in the agricultural and rural sectors or otherwise affected by climate change.
German Sparkassenstiftung supports the partner institutions not only in determining their portfolio's vulnerability to climate change impacts, but also in developing a suitable risk management system.
- Develop (environmental) sustainability strategies with financial institutions to lay the groundwork to address climate change challenges.
- Expand the range of financial products that contribute to environmental and climate investments (adaptation and mitigation).
- Improve financial institutions' risk management by developing measures to assess and manage climate risks in the loan portfolio.