Finance Archives - Green Initiative - For a Climate and Nature Positive Planet

Green Initiative Shines Bright with a Double Win at the Sustainable Company Awards 2025

Green Initiative is proud to announce an extraordinary milestone at this year’s Sustainable Company Awards 2025, hosted by Environmental Finance. We were honored with the award for Net Zero Progression of the Year, while our own Erika Rumiche Hernández was named Rising Star Under 30 — a remarkable double recognition that underscores both our organizational impact and the leadership of the new generation. The Sustainable Company Awards, held annually by Environmental Finance, stand among the most prestigious recognitions in the sustainability sector. They celebrate companies, leaders, and initiatives at the forefront of corporate sustainability, recognizing those that not only make commitments but also deliver measurable results in areas such as decarbonization, sustainable finance, climate innovation, and governance. Earning this distinction is an international seal of credibility, reaffirming the tangible impact of the strategies and actions honored. Net Zero Progression of the Year This award celebrates the innovative and results-driven strategies that Green Initiative has implemented to accelerate the global journey toward net zero. From helping businesses and destinations measure and reduce their carbon footprints, to developing scalable climate-positive and nature-positive frameworks, Green Initiative has demonstrated that climate action is not only possible but can be a powerful driver of competitiveness and resilience. Our projects in tourism, corporate sustainability, and ecosystem restoration are proof that measurable climate strategies can deliver tangible results across sectors. This recognition reinforces our commitment to setting new benchmarks for climate and nature positive action worldwide. Some of the key areas that stood out in the judges’ commentary include: Rising Star Under 30: Erika Rumiche Hernández The recognition of Erika Rumiche Hernández as Rising Star Under 30 is both an honor and an inspiration. Erika has been instrumental in advancing climate finance solutions within Green Initiative, bridging technical expertise with a bold vision for inclusive climate action. Her leadership demonstrates the power of youth-led innovation in shaping a sustainable future. By combining rigorous technical knowledge with passion for impact, Erika embodies the values of the Green Initiative and the promise of the next generation of sustainability leaders. Erika’s recognition as Rising Star Under 30 goes beyond energy and enthusiasm. Here are some of the qualities and achievements that made her stand out: A Double Recognition of Impact and Vision Together, these two awards represent more than recognition — they are a validation of our mission: to empower businesses, destinations, and communities worldwide to become climate positive and nature positive. As we look toward COP30 and beyond, this double win energizes our entire team, partners, and collaborators. It reminds us that systemic change is possible when vision meets action, and when innovation is paired with integrity. Thank You 💚 We share this success with our partners, clients, and allies around the world who trust and collaborate with us on this journey. From local communities to global institutions, this achievement belongs to everyone working tirelessly for a more sustainable and regenerative future. 🌍✨ The Green Initiative is not just progressing toward net zero — we are building the foundation for a climate and nature positive world. Related reading

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Why Financial Institutions Should Measure Their Carbon Footprint?

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When discussing how to tackle climate change risks, the role of financial institutions is more important than ever. Banks, funds, and investors have the power to support the transition to a low-carbon economy. But to do that effectively, they need to start by asking a key question: What is the carbon footprint of their portfolio? Measuring the carbon emissions linked to loans and investments is one of the most pragmatic and powerful steps a financial institution can take. It’s about more than just sustainability reports or meeting regulations — it’s about knowing where they stand so they can make better decisions, reduce risks, and unlock new opportunities for financing. In this post, I’d like to explore why measuring and certifying the carbon footprint of investment portfolios matters and how the Green Initiative is helping financial institutions turn climate ambition into climate action. Let’s take a closer look, including a real example of how two financial organizations — AlphaMundi Group, a Swiss impact investment manager, and Bankamoda, a Colombian fintech for the fashion industry — are putting this into practice. Why Portfolio Emissions Matter? While a lot of money is being directed toward climate solutions (technology or nature-based), much of it isn’t reaching the businesses that need it most — especially small and medium-sized enterprises (SMEs). In Latin America and the Caribbean, for example, local commercial and development banks receive millions in mitigation finance but deploy less than 30% to the SMEs that are actually driving the transition. One major reason for this underperformance is that many financial institutions lack accurate data on the carbon emissions of the companies they engage with. That makes it difficult to identify climate risks, target high-impact investment opportunities, or access funding from climate-focused investors. The Benefits of Measuring Portfolio Emissions Here’s what happens when a financial institution starts tracking the carbon footprint of its portfolio: 1. Better Risk Management Knowing your portfolio’s carbon footprint helps you avoid investments that could become risky or obsolete in a low-carbon economy.Carbon-intensive investments carry serious financial risks due to regulatory pressure, stranded assets, and reputational damage. Knowing your emissions is the first step to managing them. 2. Easier Access to Climate Finance Funders — from multilateral banks to private investors — increasingly look for partners who can demonstrate climate impact. Financial institutions that consistently measure and report carbon emissions are better positioned to attract ESG and impact investors, and unlock opportunities such as green bonds and blended finance solutions. 3. Stronger Market Position Once financial institutions and their investees understand where carbon emissions are coming from, they can meaningfully engage in decarbonization. This insight enables the development of climate-smart financial products — such as green loans — and supports clients in reducing their own carbon footprints.The result? Financial institutions can deploy more climate mitigation finance, while companies gain competitive advantages through access to high-value, climate-linked solutions. Regulatory Change Is Coming — And So Is Opportunity With new climate-related trade regulations emerging — such as the EU’s Carbon Border Adjustment Mechanism (CBAM) and the Deforestation-Free Products Regulation (EUDR) — understanding and managing carbon emissions will become a core competency for any organization, including financial institutions. Helping clients adapt and integrate carbon footprint management into their business models is a crucial role for financial institutions — and likely one of the most important paths to unlock new revenue streams and resource mobilization. AlphaMundi’s Commitment to Climate-Smart Investing AlphaMundi Group— under the leadership of Tim Radjy— supports businesses that generate measurable social and environmental impact across Latin America and Sub-Saharan Africa. Recognizing the intrinsic connection between poverty alleviation, social wellbeing, and climate risks, AlphaMundi is progressively integrating decarbonization metrics into its investment fund goals. These new capacities will help AlphaMundi demonstrate its leadership in carbon mitigation, as well as its ability to identify and deploy climate finance opportunities. To make this happen, AlphaMundi partnered with the Green Initiative to decarbonize its portfolio, measure client emissions, set reduction targets, and facilitate access to climate finance. Bankamoda: A Case Study in Climate and Inclusion One of the companies benefiting from this approach is Bankamoda, a Colombian fintech led by entrepreneur María del Mar Palau. Bankamoda provides financial services to micro, small, and medium-sized businesses in Colombia’s fashion industry — a sector that is both economically vital and traditionally underserved by mainstream finance. With the support of AlphaMundi and guidance from the Green Initiative, Bankamoda has: How Green Initiative Makes It Simple This is where the Green Initiative comes in. With years of experience supporting organizations worldwide, it has developed a step-by-step framework to help financial institutions integrate climate action into core operations: The Time to Act is Now For financial institutions, measuring portfolio carbon emissions is more than a technical task — it’s a strategic move. By taking action, they can lead the shift toward a climate-smart economy, reduce risks, attract new funding, and fulfill their role as key agents of change. The partnership between AlphaMundi and Bankamoda shows what’s possible when financial institutions embrace climate finance as an emerging and fast-growing opportunity with tangible benefits for long-term prosperity and competitiveness. The sooner your institution begins this journey — turning climate ambition into climate action — the greater your role in catalyzing mitigation finance and decarbonizing the economy. With the support of the Green Initiative, your institution can begin measuring the carbon emissions of its investment portfolio today — pragmatically, effectively, and with a vision for a greener future. 💡 Ready to take the next step? Reach out to Green Initiative and start building a greener, more resilient portfolio today. This article was written by Tatiana Otaviano from the Green Initiative Team. Related Articles

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Global Climate Finance Research: Share Your Expertise in Sustainable Investments

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The world is at a turning point in climate finance, where investments in climate mitigation strategies are shaping the global economy. As financial institutions, investors, and businesses align with net-zero goals, sustainable investment has never been more critical. To accelerate this transition, Green Initiative is leading a global research study on climate mitigation finance, and we invite experts like you to participate. Your insights will contribute to a peer-reviewed White Paper, providing actionable strategies for investors and financial organizations worldwide. Why Your Expertise Matters This study is conducted as part of Green Initiative’s commitment to the United Nations Principles for Responsible Investment (PRI). The findings will be included in the White Paper on Climate Mitigation Finance, a high-impact report reviewed by experts from global financial institutions, UN agencies, and sustainability organizations. 🔹 Uncover key investment trends driving climate finance.🔹 Identify challenges & opportunities in sustainable finance.🔹 Develop practical strategies to align investments with climate goals.🔹 Shape policies & financial frameworks that support net-zero transitions. With growing regulations, ESG investing, and the rise of sustainable finance, your expertise will help create innovative financial solutions that accelerate the shift to a low-carbon economy. The Role of Finance in Climate Action Financial institutions play a pivotal role in driving climate resilience and risk management. However, capital misallocation, policy uncertainties, and evolving regulatory landscapes remain challenges. By participating in this study, you will contribute to: ✔ New financial models for green investment.✔ Enhanced climate risk assessment frameworks.✔ Sustainable investment strategies that drive high-impact outcomes.✔ Global policy recommendations for climate-focused financial regulations. How to Participate Your insights will be completely confidential, and the survey takes only 15 minutes to complete. Participants will receive exclusive access to the final report, gaining early insights into emerging trends in climate finance. 🔗👉 Complete the survey here Be Part of the Global Climate Finance Movement Your voice can shape the future of sustainable investments and responsible finance. By contributing, you join a community of leading finance professionals, sustainability experts, and global investors committed to building a resilient, low-carbon economy. 📢 Join the conversation on LinkedIn! Share your thoughts using #ClimateFinanceResearch and connect with like-minded experts. For any questions, feel free to reach out. Thank you for being a catalyst for change in climate finance! This initiative is managed by Tatiana Otaviano from the Green Initiative Team.

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Green Initiative Becomes a Signatory of the Principles for Responsible Investment (PRI): A Commitment to Climate-Responsible Investments

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We are thrilled to announce that Green Initiative has officially joined the Principles for Responsible Investment (PRI) as a signatory. This important milestone reinforces our commitment to advancing climate-responsible investments worldwide and furthers our mission to drive sustainable finance that creates lasting environmental impact. What is PRI and Why is it Important? PRI is an international network of investors committed to incorporating environmental, social, and governance factors into financial decision-making. By adhering to PRI’s six key principles, signatories commit to: 1. Incorporating climate issues into investment analysis – Assessing climate risk and social impact when making investment decisions 2. Being active owners – Signatories engage in shareholder activism, advocating for sustainable corporate governance and responsible business practices. 3. Seeking appropriate disclosure on sustainability issues – Investors encourage companies to be transparent about their sustainability performance, climate impact, and corporate governance policies. 4. Promoting the acceptance and implementation of the Principles within the investment industry – Financial institutions work to advance responsible investment practices by educating stakeholders, partners, and policymakers. 5. Enhancing effectiveness by working together to implement the Principles – Collaboration among PRI signatories strengthens industry-wide efforts to develop innovative, sustainable finance solutions. 6. Reporting on progress toward implementing the Principles – Signatories provide regular sustainability reports, tracking their commitment to responsible investment and disclosing their climate impact and sustainability performance. As climate change accelerates, PRI’s role is critical in fostering sustainable investment strategies that balance financial returns with positive environmental and social impact. By implementing these six principles, investors contribute to a low-carbon economy, promote corporate transparency, and drive meaningful environmental change Green Initiative’s Role in PRI’s Commitment As a third-party verifier and advisory services provider, Green Initiative supports financial institutions, banks, and investors in achieving and maintaining their climate mitigation and nature positive investment targets. We provide independent climate and nature assessments that: Leveraging Innovation for Climate Accountability: Science based Solutions and the Climate Performance Platform Green Initiative leverages cutting-edge technology and science-based solutions to enhance climate accountability through: This AI-powered approach boosts environmental accountability while actively supporting global reforestation and ecosystem restoration efforts. By providing a data-driven approach to climate disclosure, CPP enhances corporate transparency and investor confidence in sustainable investments. Green Initiative´s Commitment to a Sustainable Future The financial sector holds immense power to drive global climate action. By joining PRI, Green Initiative plays a critical role in ensuring that investments align with climate commitments: • Ensuring impact-linked financial instruments align with climate objectives: we conduct investment due diligence, verifying that funds support sustainable energy, green infrastructure, and carbon reduction projects. • Tracking investee´s compliance with climate and nature impact goals: Through ongoing environmental performance assessments, we ensure companies meet climate and nature criteria to maintain financing agreements. • Facilitating financial term adjustments based on climate performance Financial institutions can adjust interest rates, lending terms, or investment priorities based on a investee´s progress. This process fosters trust, transparency, and accountability, ensuring that capital flows actively contribute to a low-carbon, sustainable economy. Together, we can build a future where responsible investments play a pivotal role in mitigating climate change and fostering positive outcomes for our planet. Ready to align your investments with climate action? Contact us today to explore how Green Initiative can help you achieve measurable climate mitigation impact through responsible investing. Contact us at https://greeninitiative.eco/contact/ This article was written by Tatiana Otaviano from the Green Initiative Team.

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Blended Finance for Decarbonization: De-risking Climate Mitigation Investments

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Over the past decade, blended finance has become an increasingly relevant tool for scaling development and “de-risking” social and environmentally positive markets to attract private capital. According to the Organization for Economic Co-operation and Development (OECD)1, in 2023, blended finance mechanisms catalyzed the attraction of USD 70 billion to development-linked investments. In this article, we explore what blended finance is in simple terms and how it can support the green economy through decarbonization. Very different from a carbon tax, blended finance is an entrepreneurial approach that involves public or philanthropic money in a deal’s fundraising efforts, as this extra capital can significantly help reduce risks for private investors. Philanthropic funds are extensively used to fund technical assistance efforts for example, while governments tend to have financial bandwidth and resilience in case the deal doesn’t reach the expected return in the given timeline. At the same time, private capital is a valuable component of the fundraising aspect of blended finance deals, as it can help close significant funding gaps, and allows asset managers, banks, and other types of private investors to simultaneously build their know-how in development markets and bring an innovative and fast-paced approach to sectors that were previously exclusive governmental responsibility2. According to the World Economic Forum (WEF)3 , decarbonizing the economy by 2050 will collectively cost $3.5 trillion yearly, which is equivalent to half of global corporate profits and a quarter of world taxes collected. This transition is mainly based on the decarbonization of infrastructure (including energy), which, according to The World Bank is considered high-risk by most private investors and emits 60% of all greenhouse gases yearly4. In 2024, the World Bank5 released a blog post affirming that throughout the 2013-2023 decade, the average infrastructure deal attracted 40 cents of private capital per 1$ of government or philanthropic money invested: however, the 10% most successful blended finance infrastructure deals attracted up to 2$ of private capital per 1$ in public investments. But what are the deciding factors, and how can climate mitigation projects and products be framed as highly profitable deals for private investors? PwC affirms that successfully attracting private capital to net zero infrastructure projects, requires the implementation of clear and consistent government policies that can provide the stability investors seek6 . A practical example is Australia’s recent surge in renewable energy investments. In 2024, Australia committed $9 billion to large-scale wind and solar farms, marking the highest public investment in six years and adding 4.3 GW of new renewable capacity. This significant increase aligns with federal and state policy goals aimed at generating 82% of electricity from renewable sources by 2030. The passage of the expanded capacity investment scheme, which promises 23 GW of renewable energy and 9 GW of energy storage capacity, has further bolstered investor confidence. Industry experts emphasize that such stable and supportive policies are crucial for maintaining and enhancing investor confidence in the renewable energy sector7 . By the end of 2025, with renewable generation expected to account for around 48% of the energy mix, Australia’s emissions reductions are projected to reach 75 million tonnes annually, representing a 39% decrease in electricity emissions compared to a scenario without renewable growth8. Green Initiative offers climate certifications and net-zero road mapping services to start-ups, corporations, and institutional investors, which is a form of actionable technical assistance and can be used to facilitate the decarbonization of a variety of existing and upcoming energy and infrastructure projects. With its clients, Green Initiative is determined to contribute to a net-zero economy by 2050 and strengthen the green transition for a climate-positive economy. Visit greeninitiative.eco to learn more about existing projects. [1] OECD (2025), Mobilised private finance for development [2] Network for Greening the Financial System (2024), Scaling up Blended Finance for Climate Mitigation and Adaptation in Emerging and Developing Economies [3] WEF (2022), Transitioning to the green economy will cost the world another $3.5 a year [4] The World Bank (2023), The Power of Private Capital in Sustainable Development [5] The World Bank (2024), How blended finance can reorient cautious private investors to infrastructure [6] PwC, Achieving Net-Zero Infrastructure [7] The Guardian (2025), Australia’s Investment in Large Scale Wind and Solar hits six-year Peak [8] Australia’s Clean Energy Council (2024), Emissions Reduction Delivered by Renewable Energy Related Articles

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Carbon Credits in 2025: A Turning Point for Climate Action?

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The global carbon market is reaching a critical juncture. As climate action accelerates, governments, businesses, and financial institutions are increasingly integrating carbon credits into their sustainability strategies. However, challenges such as transparency, credibility, and market fragmentation persist. Could 2025 be the year that carbon credits transition from a supplementary tool to a mainstream climate action mechanism? Why Carbon Markets Matter for Climate Action Carbon credits play a crucial role in reducing greenhouse gas emissions, enabling companies to offset their carbon footprint through verified climate and nature positive initiatives. As regulatory frameworks evolve and demand for high-integrity carbon credits rises, businesses face growing pressure to make credible sustainability commitments. Wendy Chen, in her article for Climate & Capital Media, explores the key drivers shaping the carbon market, including policy incentives, technological advancements, and small and medium-sized enterprises (SMEs). Inspired by her insights, we examine whether 2025 could be the defining moment for carbon markets. Will Policy Incentives Make 2025 a Game-Changer? Governments are increasingly shaping carbon markets with stronger policies, aiming to ensure the credibility and accessibility of carbon credits. The integration of voluntary and compliance markets is a critical factor in determining whether 2025 will be a breakthrough year. Technological Innovations Strengthening Carbon Markets With the rise of artificial intelligence, cloud computing, and data centers, the tech sector’s carbon footprint has grown significantly. Leading corporations are responding by integrating carbon credits into their sustainability roadmaps, helping shape the future of carbon markets. SMEs and the Growing Role of Carbon Credits Historically, large corporations dominated carbon markets, but SMEs are now becoming key players in both the demand and supply of carbon credits. New Standards Enhancing Carbon Market Integrity As carbon markets scale, new standards are emerging to ensure accountability. Organizations like the Integrity Council for the Voluntary Carbon Market (ICVCM) and the Science-Based Targets initiative (SBTi) are raising the bar for carbon credit verification, helping build trust and drive market growth. The Expanding Role of Nature-Based Solutions Nature-based solutions such as reforestation, blue carbon projects, and regenerative agriculture are crucial for achieving climate and nature positive outcomes. These approaches help absorb CO₂ while preserving biodiversity and supporting local communities. Increasing investment in these projects will be vital in ensuring the integrity and impact of carbon credits. Are Carbon Removal Technologies the Future? Beyond traditional carbon offsets, businesses are investing in direct air capture (DAC), biochar, and enhanced weathering to permanently remove carbon from the atmosphere. These emerging technologies are gaining traction as companies seek long-term, high-impact solutions for carbon neutrality. Beyond Offsetting: Corporate Climate Strategies for 2025 While carbon offsetting remains an essential tool, many corporations are shifting towards insetting, integrating emission reduction measures directly within their supply chains. Companies like Nestlé and Unilever are investing in regenerative agriculture to cut emissions at the source, marking a broader transition toward holistic sustainability strategies. Financial Institutions and the Growth of Carbon as an Asset Class Banks, asset managers, and institutional investors are increasingly incorporating carbon credits into green bonds, carbon ETFs, and structured carbon finance mechanisms. As carbon markets mature, financial backing will be essential for scaling high-quality, impact-driven climate projects. Challenges and Opportunities in 2025 While the carbon credit market is expanding, hurdles such as additionality concerns, double counting, and verification inconsistencies still exist. Addressing these challenges will be crucial to ensuring carbon markets deliver real climate action and economic benefits. If 2025 is to be the turning point for carbon credits, stakeholders must work collaboratively to improve transparency, accessibility, and governance. With strong regulatory frameworks, technological innovation, and financial backing, carbon markets could become a cornerstone of global decarbonization efforts. At Green Initiative, we believe in advancing high-integrity carbon markets and guiding businesses on their path to net-zero emissions. As demand for climate and nature positive solutions grows, we support organizations in leveraging carbon finance opportunities for tangible environmental impact. This article was inspired by Wendy Chen’s insights in Climate & Capital Media. Her analysis provides valuable perspectives on the evolving carbon market landscape. Read her article here.

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Financing the Green Future: Principles for Tracking Climate Mitigation Investments

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As most of the world intensifies efforts to combat climate change, the role of climate finance has become increasingly vital. The Paris Agreement has set an ambitious goal: to keep global temperature rise well below 2°C, with a strong commitment to limiting it to 1.5°C. Achieving this target requires a fundamental transformation of the global economy, shifting investments away from high-emission industries and toward nature-positive solutions, such as renewable energy, sustainable transport, and green infrastructure. However, ensuring that financial flows genuinely align with climate goals requires a transparent, standardized framework for tracking and reporting climate mitigation investments. The Common Principles for Climate Mitigation Finance Tracking, developed by multilateral development banks (MDBs) and the International Development Finance Club (IDFC), serve this purpose by establishing clear eligibility criteria for climate-positive investments while excluding those that undermine long-term decarbonization efforts. This article explores the key principles of climate mitigation finance tracking, the sectors benefiting from green investments, and the future of financial strategies aimed at accelerating climate action. The Role of Climate Mitigation Finance Climate mitigation finance is a crucial tool for supporting the transition to a net-zero economy. It ensures capital is directed toward investments that: 1. Reduce or Avoid Greenhouse Gas (GHG) Emissions Reducing greenhouse gas (GHG) emissions is a core pillar of climate mitigation finance, as it directly addresses the root cause of global warming. By shifting investments toward clean energy, low-emission transport, and energy-efficient infrastructure, we can significantly cut carbon emissions while driving economic growth and innovation. Key strategies include transitioning from fossil fuels to renewable energy sources, electrifying transportation systems, and enhancing energy efficiency in buildings and industries. These measures not only reduce dependence on high-carbon energy but also create a foundation for a sustainable, net-zero future. 2. Enhance Carbon Sequestration While reducing emissions is crucial, it is equally important to remove existing carbon dioxide (CO₂) from the atmosphere to mitigate climate change effectively. Carbon sequestration plays a key role in this effort by capturing and storing CO₂ through natural and technological solutions. Investments in reforestation and afforestation restore forests that act as natural carbon sinks, while regenerative agriculture enhances soil health, increasing its capacity to store carbon. Additionally, carbon capture and storage (CCS) technologies provide an industrial-scale solution by trapping CO₂ from power plants and factories before it enters the atmosphere. These approaches work together to offset emissions and contribute to a climate-positive economy. 3. Transition High-Emission Industries Heavy industries such as steel, cement, and chemicals are among the largest contributors to global carbon emissions. Decarbonizing these sectors is essential for achieving a net-zero economy, but doing so requires targeted investments in innovative, low-carbon technologies. One of the most promising solutions is green hydrogen, which serves as a clean alternative to fossil fuels in industrial processes. Additionally, circular economy initiatives—such as waste reduction, recycling, and material reuse—help lower emissions by minimizing resource consumption. The adoption of sustainable construction materials, such as carbon-negative cement and recycled steel, further reduces the environmental impact of the building sector. Without a robust system for tracking climate-positive investments, financial flows could be misallocated to projects that offer only short-term emission reductions while reinforcing long-term fossil fuel dependency. The Common Principles ensure that financial institutions prioritize truly sustainable climate investments. Key Principles for Climate Mitigation Finance Tracking The Common Principles categorize climate mitigation finance into three distinct groups, ensuring investments are aligned with the Paris Agreement and contribute to a nature-positive global economy. 1. Negative- or Very-Low-Emission Activities To achieve a net-zero future, investments must prioritize projects that produce little to no greenhouse gas emissions while actively contributing to deep decarbonization. These activities are fully aligned with global climate targets and represent the most effective pathways toward long-term sustainability. Key areas of investment include renewable energy, such as solar, wind, hydropower, and geothermal, which replace fossil fuels and provide clean, sustainable electricity. Additionally, carbon sequestration projects—including reforestation, soil carbon restoration, and blue carbon initiatives (e.g., mangrove and seagrass restoration)—help remove CO₂ from the atmosphere. Further advancements in low-carbon industrial production are also essential. Technologies such as green hydrogen, carbon-negative cement, and bioplastics provide viable alternatives to traditional, high-emission materials, reducing the environmental impact of key industries. These projects form the foundation of a climate-positive economy and ensure that financial investments drive real, lasting change toward a sustainable world. These projects are fully aligned with net-zero targets and drive deep decarbonization. Examples include: 2. Transitional Activities While the ultimate goal is a fully decarbonized economy, some industries and systems require an intermediate phase to reduce emissions before achieving full sustainability. Transitional activities play a crucial role in this process by improving the efficiency of existing infrastructure while minimizing reliance on fossil fuels. However, these projects must be carefully managed to avoid long-term carbon lock-in and ensure they serve as stepping stones toward net-zero solutions. Key transitional strategies include industrial energy efficiency upgrades, which can reduce emissions by 30–50% through advanced technologies such as waste heat recovery, automation, and energy-efficient manufacturing processes. In the transport sector, hybrid vehicle adoption provides an interim solution, lowering emissions while paving the way for full electrification and hydrogen-powered mobility. Additionally, retrofitting buildings with energy-efficient solutions, such as heat pumps, green roofs, and smart grid integration, helps reduce energy consumption and carbon footprints. By ensuring that transitional activities remain aligned with long-term decarbonization goals, financial investments can maximize climate benefits while accelerating the global shift toward sustainable energy, transport, and industry. These projects reduce emissions in existing systems but still involve some reliance on fossil fuels. They must not create long-term carbon lock-in. Examples include: 3. Enabling Activities Achieving a net-zero economy requires not only direct emissions reductions but also a strong support system that enables the widespread adoption of climate-positive technologies and practices. Enabling activities play a crucial role in facilitating this transition by providing the financial, regulatory, and technological infrastructure needed to scale up green investments. Key enabling strategies include green bonds and sustainability-linked finance mechanisms, which provide dedicated funding for climate mitigation projects. These financial instruments

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Positive Impact Investment: The New Frontier of Investments for Climate Action and the Role of Verification Organizations

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In recent years, impact investments have gained prominence as a powerful tool to finance initiatives that generate tangible social and environmental benefits. Within this context, impact investments have emerged as innovative financial instruments, offering a unique opportunity to channel resources toward combating climate change and promoting sustainable and social solutions. What Are Impact Investments? Impact investments are a type of debt instrument with a key distinction: the payments are tied to achieving specific social, climate or environmental impact targets. In other words, the repayment is directly linked to the borrower’s ability to meet measurable objectives, such as reducing carbon emissions or restoring ecosystems. This structure is relevant to climate finance because it allows investors to ensure that their capital makes a significant contribution to mitigating climate risks while also generating a financial return. This innovative structure offers a win-win scenario: Transforming Climate Financing: A Paradigm Shift in Resource Allocation The importance of these investment instruments goes beyond being mere financial tools. They represent a paradigm shift in how resources are allocated to mitigate environmental impacts. By effectively channeling capital to companies and projects committed to addressing climate change, these investments drive transformation within the private sector and align financial interests with global sustainability goals. Traditional financing models often lack accountability when it comes to environmental impact. Impact investments flip the script by directly linking financial performance to climate outcomes. This approach channels resources into projects that actively address climate risks while fostering long-term economic resilience. But achieving these lofty goals requires more than just good intentions. For these investments to work, robust systems for monitoring, evaluating, and verifying outcomes are essential. The Role of Independent Verification For impact investments to be effective and truly deliver the desired outcomes, independent evaluation and ongoing verification of results are crucial. This is where organizations like Green Initiative play a vital role. As a specialized third-party entity, Green Initiative provides advisory, certification, and monitoring services for financial institutions—such as funds and banks—that offer financial instruments linked to positive climate and environmental impacts. This is where third-party organizations like Green Initiative step in. As a trusted verifier, Green Initiative ensures that the impacts promised by borrowers are not only measurable but also delivered transparently and effectively. Here’s how: How Green Initiative Ensures Impact Leveraging its expertise, Green Initiative ensures that climate and environmental impacts are measured and monitored accurately and transparently, guaranteeing that resources allocated to these projects are utilized effectively. This advisory role, often referred to as third-party verification, extends beyond merely tracking results. It also helps ensure that borrowers meet the climate mitigation goals agreed upon in their contracts with funders, such as reducing CO2 emissions or enhancing biodiversity. Strengthening Credibility and Transparency One of the standout features of impact investments is their ability to foster transparency and accountability in climate financing. By linking financial success to environmental performance, these instruments ensure that resources are used where they matter most. For example, a company borrowing funds to transition to renewable energy can have its loan terms adjusted based on measurable reductions in carbon emissions. This accountability incentivizes borrowers to achieve their goals while giving investors confidence that their capital is making a tangible difference. By acting as an independent advisor, Green Initiative also strengthens the credibility and transparency of the process. This supervisory role builds trust among all stakeholders—investors, financial institutions, entrepreneurs, and society at large. Through rigorous and impartial audits, Green Initiative validates the impact metrics reported by borrowers, ensuring that funds are appropriately used to achieve the desired outcomes. Beyond Verification: Driving Accountability In this context, Green Initiative’s work goes beyond simply validating results. It also assists financial institutions in monitoring compliance with the impact objectives of the instrument. This can include adjustments to instrument conditions, such as modifying interest rates based on the borrower’s performance. This flexibility ensures that impact investments remain aligned with environmental objectives and promote ongoing accountability among borrowers, incentivizing them to achieve the agreed-upon goals. Positive impact investments are more than just a financial innovation—they’re a strategic approach to driving global sustainability. Here’s why they matter: Unlocking the Potential of Positive Impact Investments Positive impact investments not only offer a way to finance climate mitigation projects but also contribute to building a more sustainable and transparent economy. These investments represent a groundbreaking shift in how we finance climate action. But their success hinges on rigorous monitoring, accountability, and collaboration between stakeholders. However, to unlock their full potential, rigorous monitoring and validation of impacts must be conducted by trustworthy entities like Green Initiative. In doing so, these instruments can ensure that financial resources are effectively directed toward combating climate change, paving the way for a more sustainable future for everyone. At the heart of this ecosystem is Green Initiative, a leader in providing the oversight and expertise that positive impact investments demand. From validating outcomes to guiding borrowers and investors through the intricacies of sustainability metrics, Green Initiative ensures that these financial tools live up to their potential. Our work goes beyond audits and certifications—it helps create a culture of accountability in climate financing, paving the way for a transparent, sustainable future. Now is the time to embrace this innovative approach to climate action. Together, we can drive meaningful change and create a better future for generations to come. Written by Tatiana Otaviano, from the Green Initiative Team.

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Understanding IFRS S Insights from Kwantland's Las NIIFs (con S al Final)

Understanding IFRS S: Insights from Karen Wantland – “Las NIIFs (con S al Final)”

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This article draws directly from the insightful post “Las NIIFs (con S al Final),” authored by the expert Karen Wantland at Kwantland. Her analysis offers a comprehensive overview of the International Financial Reporting Standards (IFRS) and their evolution into the new IFRS S standards, which focus on sustainability-related disclosures. Below, we summarize and expand on their key points to highlight the importance of these standards for businesses worldwide. About Karen Wantland Karen Wantland is a writer, strategist, innovator, and advisor on Environmental, Social, and Governance (ESG) matters. With over two decades of experience, she has collaborated with companies and organizations to advance sustainability and social innovation. Karen is also a seasoned columnist, sharing her expertise through various media outlets, making her a respected thought leader in the ESG field. Her contribution in the original article provides valuable clarity and actionable insights into the evolving landscape of ESG reporting, particularly the IFRS S standards. What Are IFRS and IFRS S Standards? As Karen Wantland´s article explains, International Financial Reporting Standards (IFRS) have provided a unified accounting framework for over two decades, ensuring transparency and comparability in financial statements across jurisdictions. The standards, developed by the International Accounting Standards Board (IASB), are mandatory in some countries and optional in others. In response to the growing demand for sustainability-related reporting, the IFRS Foundation established the International Sustainability Standards Board (ISSB) in 2021. This board focuses on developing standards that guide companies in disclosing the financial implications of Environmental, Social, and Governance (ESG) issues. These are known as IFRS S standards, with the “S” emphasizing sustainability. Key Features of IFRS S Standards The IFRS S standards aim to enhance the quality of sustainability reporting by focusing on financial materiality, a concept drawn from the Sustainability Accounting Standards Board (SASB). Karen Wantland’s article highlights two key IFRS S standards: According to Karen Wantland, IFRS S standards are gradually being adopted globally, with countries like Mexico and Costa Rica already requiring compliance by 2026. Why IFRS S Standards Matter Karen Wantland’s analysis underscores the critical role of IFRS S standards in bridging the financial and sustainability reporting gap. By adopting these standards, companies can: Karen Wantland’s Recommendations for Compliance The original article provides valuable recommendations for businesses preparing to comply with IFRS S standards. Here are the key steps they suggest: Final Thoughts Introducing IFRS S standards marks a significant step forward in sustainability reporting. By following Karen Wantland´s guidance provided in her articlle “Las NIIFs (con S al Final)”, businesses can ensure compliance, enhance transparency, and seize new opportunities in a world increasingly focused on sustainability. At Green Initiative, we applaud Karen Wantland for her comprehensive breakdown of these critical standards. For further insights, visit the original Las NIIFs (con “S” al Final) article. Related Articles:

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Green Initiative Showcases Machu Picchu as a Model for Carbon Neutral and Regenerative Tourism at COP16

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During the 16th Conference of the Parties to the United Nations Convention on Biological Diversity (COP16), Green Initiative presented the case of Machu Picchu as a model for a Carbon Neutral and Regenerative Tourism Destination. COP16 concluded in Cali after 12 days of intense discussions. Known as “The People’s COP,” the summit was divided into a blue zone for official negotiations and a green zone focusing on civil society participation. According to the Colombian government, the green zone attracted nearly a million visitors, with around 40,000 attending various academic activities. In the blue zone, where negotiations took place, parallel events were also organized in the pavilions of different countries and entities. Among these was the Peru Pavilion, which hosted a series of prominent events, including one titled “Machu Picchu: Carbon-Neutral and Regenerative Tourism Destination.” This session showcased the climate and nature-positive initiatives underway in Machu Picchu, aimed at reducing carbon emissions and restoring ecosystems as part of its tourism management. The panel featured representatives from organizations such as the National Service of State-Protected Natural Areas (SERNANP), AJE Group, Tetra Pak, and Latam Airlines. Panelists emphasized the importance of public-private sector collaboration for the success of projects like Machu Picchu. They recognized the leadership of Green Initiative as a key advisor in the region’s transition to decarbonization and regenerative tourism. COP16 was a platform for dialogue and reflection and marked significant milestones in its final plenary session. Among the most notable were creating a subsidiary body for Article 8J to support Indigenous peoples and local communities, the acknowledgment of Afro-descendant peoples as biodiversity guardians, and the Cali Fund, a global mechanism for the equitable distribution of benefits derived from genetic information. Additionally, collaboration between the Biodiversity and Climate Change agendas was promoted, in preparation for COP29 on Climate Change in Azerbaijan and the upcoming COP30 in Brazil. Colombia also took the opportunity to launch the world’s first biodiversity bonds during COP16, an initiative aimed at involving the private sector in biological diversity preservation. Banco Davivienda, with an investment of up to 50 million dollars from the International Finance Corporation (IFC), will channel these resources into projects with positive biodiversity impacts. Similarly, BBVA Colombia issued another bond, subscribed to by IDB Invest and IFC in two tranches to finance projects with positive biodiversity impacts. Written by Musye Lucen from the Green Initiative team. Related articles:

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