Continued support to green microfinance in Latin America
NDF approved a EUR 4.1 million grant for the project EcoMicro 2.0
Since 2012, NDF and the Multilateral Investment Fund (MIF) have co-financed the EcoMicro technical cooperation program which trains microfinance institutions (MFIs) to provide new green finance instruments in order to capitalise on new opportunities in clean energy financing. The program also trains the MFIs to adjust their risk management models to climate change risk and to incorporate climate impact into their internal policies and operations. During the first phase of the program, 12 microfinance institutions benefitted from the support.
On 13 October 2015, NDF approved EUR 4.1 million of additional support to the program that now will provide technical assistance, awareness-raising and training for at least 20 additional MFIs in the region. The expanded program aims at consolidating the green microfinance ecosystem through building on the market momentum achieved through the first phase. The program will play a key role in connecting private and public capital with those MFIs that are ready to scale up their green microfinance initiatives. The program will also serve as a link between different sources of green funds such as individual investors, international climate funds, and MFIs, as well as continue tapping Climate Investment Funds when available for scale-up of specific projects. The overall program focuses on Latin America and the Caribbean in general. NDF’s support is targeted mainly for Bolivia, Nicaragua and Honduras.
The EcoMicro program has been recognised as a global leader in green microfinance. The UN Framework Convention on Climate Change at the climate summit in Peru in 2014 awarded the program a Momentum for Change Lighthouse award. Participants in the global climate finance discussions at the event spoke about the need to continue and expand these programs. EcoMicro was also held up as an example to other regions as a successful model to spur the growth of green microfinance.
More information
EcoMicro Homepage
The UN Momentum for Change Climate Award received for the EcoMicro program
