Countries
Mexico, Costa Rica, Colombia, Brazil, Peru
Local project partner
Caja Pio XII S.C. DE A.P. DE R.L DE C.V.
VISION FUND MEXICO S.A. DE C.V. SOFOM ENR
Cooperativa Nacional de Educadores (COOPENAE)
Fundecooperación para el Desarrollo Sostenible
German project partner
Kreissparkasse Limburg
Donor
BMZ
Duration
01.10.2021 - 30.09.2026
Developing and emerging countries in particular are exposed to the consequences of climate change due to their geographical location. In addition, their dependence on agriculture makes them highly vulnerable. It is important to promote socio-ecological transformation by mobilizing financial resources for investments in green infrastructure, the use of renewable energies, 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 equality) 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 specific project objective here is to sustainably transform and strengthen the local microfinance sector in the five project countries 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:
- Awareness: Multiple stakeholders in the financial sector and affiliated stakeholders will be sensitized to and knowledge of sustainable transformation in finance (ESG) issues will be strengthened.
- Transformation: The sustainable, climate-resilient, and inclusive transformation of finance will be strategically and operationally promoted in the microfinance sector.
- Innovation: Sustainable innovations for inclusive socio-ecological transformation of the economy and society is strategically promoted and scaled up.
