CAF and PROCREDIT bank promote "Green" Credit Line
Ecocredit -green financial product- will promote investments in the use of renewable energy, energy efficiency, and mitigation of environmental impacts
(Quito, February 3, 2014).- With the objective of promoting the internalization of principles and practices of environmental and social management within the region's financial sector, CAF, Development Bank of Latin America, has been developing the Environmental Management Program for Financial Institutions for over six years.
In the framework of this Program, with non-reimbursable resources CAF provided financing to Ecuador's Procredit Bank, to support the identification and application of measures aimed at mitigating the environmental impacts resulting from the Bank's operating activities, as a corporate environmental responsibility strategy.
A System for the Analysis of Environmental and Social risks was established, to guarantee environmental sustainability and social responsibility of the Bank's investments and projects. In addition, a green financial product called "Ecocredit"was created,seeking to promote the financing of entrepreneurial initiatives with ample benefits and minimal environmental risks.
These initiatives significantly sensitized the bank's staff regarding the subject of the environment. Thus, 300 staff members of Procredit were trained in the identification and management of environmental risks within the credit risk analysis process, in addition to subjects related to the Bank's internal environmental management, such as recycling residues.
Later, creating synergies between the Andean Biotrade Initiative, a project carried out by CAF jointly with the GEF and the UNEP, and CORPEI CAPITAL - an Ecuadorean promotion institution- an agreement was signed with Procredit to provide training to its staff regarding Biotrade, and to prepare them for the granting of a credit line for USD 500 thousand to finance biotrade projects in small and medium-sized enterprises.
Thus, in November of 2013 the line of credit was granted to finance Biotrade initiatives, multiplying the beneficiaries and positive environmental impacts of the ECOCREDIT green product, and showing the feasibility of financing for Biotrade initiatives in Latin America and the Caribbean to the banks in the region.
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