Green SMEs LAC Program - Towards low-emission production in Latin America - GCF and CAF

The program aims to reduce greenhouse gas (GHG) emissions in the region through local financing of climate change projects in the renewable energy, energy efficiency and land use sectors. The countries involved are Chile, Ecuador, Panama and Peru. The initiative seeks to overcome financial and knowledge barriers, helping local actors, including small and medium-sized enterprises (SMEs) and technology service providers, to access climate finance through green credit lines and technical support and awareness-raising activities. The program is composed of two main components. The first component focuses on offering green credit lines to local financial institutions (LFIs) to finance projects that contribute to climate change mitigation in sectors such as renewable energy, energy efficiency and land use. The second component focuses on providing technical support and raising awareness about climate change through training, project development and creating an enabling environment for the implementation of these projects. Likewise, the participation of women-led companies is promoted, fostering financial inclusion. The ultimate goal is to achieve mitigation of up to 10.7 million tons of CO2 equivalent over 20 years, while promoting sustainability in land use and boosting local economic development in participating countries.