The Multilateral Investment Fund (MIF), a member of the IDB Group, is partnering with the Nordic Development Fund (NDF) on a US$7mn program to launch green microfinance products for both mitigation and adaptation to climate change in Latin America and the Caribbean.
The four-year project, known as the "Ecomicro Program," is the first to focus on microfinance products related to climate change products and businesses in the region, MIF said in a press release. It will be implemented region wide.
The program will provide training to microfinance institutions to develop sustainable green finance instruments; adjust their risk management models to include climate change risk; and incorporate climate impact into their internal policies and operations.
By providing tools and know-how to these institutions, the program seeks to increase access to clean energy, energy efficiency technology and adaptation products to micro, small and medium-sized companies.