Green Credit Financing for Financial Institutions
Background
Climate change poses a risk to investments in agriculture and other sectors. At the same time, adapting to adverse effects of climate change, as well as implementing projects to mitigate greenhouse gases, can be a business opportunity as it creates new investment needs. Local banks in Latin America and the Caribbean are starting to realize this potential and there is growing interest in developing green credit lines to cater to this demand. CAF – Development Bank of Latin America wants to help financial intermediaries to overcome barriers in implementing green financial products in clean energy and land use. UNIQUE together with BASE Energy were contracted to conduct a feasibility study on green lending in the region. The study will be used to apply for concessional funding from the Green Climate Fund.
Our contribution
- In-depth feasibility study on green lending potential in the agriculture and forestry sectors.
- Identification of climate-smart business models in land use with scaling-up potential.
- Stakeholder consultations with local banks for tailor-made green finance solutions.
- Strategic advisory to develop large-scale green finance support throughout Latin America and the Caribbean.
- Preparation of full proposal to the Green Climate Fund’s Private Sector Facility.
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