23 April 2020

Inclusive Green Finance Policies for MSMEs

Climate change poses significant risk to the performance, competitiveness and sustainability of MSMEs, which are the backbone of developing countries and play a vital role in providing employment, goods and services.

While financial regulators have taken a variety of approaches to addressing climate change, existing policy tools and techniques for low-income populations and MSMEs can be refined and repurposed with a green focus. This will allow policymakers to act swiftly while at the same time lay the groundwork for innovative policies that may require more preparation. The policies in this publication are presented with reference to AFI’s 4Ps framework of inclusive green finance: Provision, Promotion, Protection and Prevention.

AFI's Inclusive Green Finance (IGF) workstream is part of the International Climate Initiative (IKI)  supported by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), based on a decision of the German Bundestag.


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