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GREEN CREDIT GUARANTEE SCHEMES FOR MSMEs
CONCLUSIONS AND RECOMMENDATIONS
What is apparent from the AFI membership surveys and interviews is that the green and sustainable finance policies and enabling regulations that are needed to promote inclusive green lending (and by extension, CGSs that support such lending) are at the very early stages of development. The research underscores that capacity building to improve credit risk assessment skills for green transactions (such as through training and
workshops) and operational experiences gained from existing CGSs will be important success factors for implementing green CGSs for MSMEs. Once green finance policies and guidelines are in place, opportunities to kickstart green lending include adapting existing CGSs and leveraging regional and international donordriven schemes that support green financing for MSMEs.
Villager sells water from his well in the villages around his home during the drought season, Cambodia. (Hemis/Alamy Stock Photo)
