MSME Financing targeting energy efficiency and climate change

Managua, June 29, 2016. - The Green MSME Initiative publicized its offering of financial solutions for the implementation of energy efficiency, renewable energy and environmental protection projects at the first symposium on “Opportunities for Businesses in Energy Efficiency, Renewable Energy and Cleaner Production.”

The Green MSME Initiative is a mechanism established by CABEI with the financial support of the German KFW Development Bank and the European Union through its Latin American Investment Facility (LAIF) in order to contribute to climate and environmental protection by encouraging MSMEs to invest in energy efficiency and renewable energy on a regional level.

Keynote speaker María Engracia de Trinidad Prado noted that the Initiative channels resources through Central American IFIs on competive terms, which depend on the particular focus of the given green initiative.

The maximum amount granted is US$5 million per project, for a period of up to 10 years, depending on the kind of undertaking involved; coverage will be intermediated through CABEI’s regional IFI network; all project in the Central American region are eligible for financing.

Different investment indicators are taken into account for a project to be deemed eligible. For example, energy efficiency is defined as a 15% or greater savings in the energy bill, while renewable energy involves projects that generate up to 5 megawatts.