Sector Study N°7 - Advances and challenges of green financing in Central America and the Caribbean

Between 2018 and 2021, REDCAMIF published a serie of studies on microfinance in Central America and the Caribbean to highlight the advances and challenges of the inclusive finance sector in the region. This document is part of the joint effort that REDCAMIF and ADA have undertaken over the last 10 years promoting financial and social inclusion of micro and small entrepreneurs and particularly the advancing of green finance in the region, especially in a context where micro, small and medium enterprises (MSMEs) and microfinance institutions (MFIs) are increasingly vulnerable to the effects and impacts of climate change and the degradation of natural resources.

This study carries on the effort of promoting green finance by capitalising on relevant experiences in the region, identifying ways of scaling up green finance, and analysing the limitations and opportunities of green finance in the microfinance sector.

The survey methodology allowed the collection of information from a representative sample of the microfinance sector having implemented the approach in the region.