Countries
Mexico, Costa Rica, Colombia
Local project partner
Caja Popular Los Reyes,
Caja SMG
Cooperativa Nacional de Educadores (COOPENAE)
Fundecooperación para el Desarrollo Sostenible
German project partner
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Donor
BMZ
Duration
01.10.2021 - 30.09.2026
Climate change is one of the greatest global challenges of our generation. Developing and emerging countries in particular are exposed to the consequences of climate change due to their geographic location, although they have contributed the least. In addition, their high dependence on agriculture also represents a strong vulnerability. It is necessary to promote the socio-ecological transformation by mobilizing financial resources for investments in green infrastructure, the use of renewable energy, the protection of ecosystems, the promotion of innovative green technologies, etc. The Sustainable Finance approach is based on ESG criteria. In addition to the focus on climate change and biodiversity (Green Finance), social sustainability (e.g. a smaller gap between rich and poor or gender equity) and governance aspects (anti-corruption, non-discrimination, etc.) are also taken into account.
The overarching development goal (overall objective) is to accompany the social-ecological transformation of the financial sector and link it to financial inclusion. In this way, a sustainably designed financial system should strengthen the reorientation of the economy, the creation of good, climate-friendly employment and the realization of investments for climate change adaptation and prevention. The project objective here is to sustainably transform and strengthen the local microfinance sector as a key catalyst for a Just Transition in rural areas, in the MSME sector and for vulnerable populations. The project approach is based on three pillars: awareness raising (incl. sustainable education), transformation (development of sustainable strategies for MFIs and risk management) and innovation (startup accelerator for sustainable business ideas).
Services provided:
- Outcome 1 (Awareness): Multiple stakeholders in the financial sector and affiliated stakeholders are sensitized to and knowledge of sustainable transformation in finance (ESG) issues is strengthened (pays one to the Transition focus as per the Green Inclusive Finance model).
- Outcome 2 (Transformation): The sustainable, climate-resilient, and inclusive transformation of finance is strategically and operationally promoted in the microfinance sector (pays in to the "Resilience" and "Adaptation" focal points according to the Green Inclusive Finance model).
- Outcome 3 (Innovation): Sustainable innovation for inclusive socio-ecological transformation of the economy and society is strategically promoted and scaled up (pays into the "prevention" and "adaptation" focal points according to the Green Inclusive Finance model).
