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Green Initiative and Swiss Impact Fund Alphamundi Join Forces to Drive Climate Mitigation Finance

As the world faces escalating climate challenges, the need for innovative financial solutions to support climate mitigation has never been more urgent. In response, Green Initiative and AlphaMundi Group are proud to announce a strategic partnership to accelerate climate certification for select portfolio companies of the Social Alpha Fund. This collaboration represents a critical step toward promoting sustainability and providing these companies with competitive advantages tied to their climate change mitigation efforts. Green Initiative’s Strategy to Expand Climate Finance Access Despite increasing global attention, a significant gap remains between the availability of climate finance and the needs of the private sector. Major financial institutions like the World Bank, IADB, AFD, KFW, and national development banks allocate substantial funds, but these resources often fall short of reaching the businesses that need them most. Barriers such as complex application processes, stringent compliance requirements, and a lack of standardized data impede private sector engagement in climate finance. Green Initiative seeks to overcome these challenges through a comprehensive, structured approach that simplifies access to climate finance. Its four-step strategy focuses on enhancing sustainability rating tools, conducting in-depth portfolio assessments, guiding companies through certification processes, and maintaining continuous impact monitoring. By refining these processes, Green Initiative aims to create more efficient pathways for climate finance allocation on a global scale. AlphaMundi Group: Scaling Climate- and Gender-Responsible Enterprises through Impact Investing AlphaMundi Group, a Geneva-based asset manager, is committed to impact investing with a focus on financing businesses that generate measurable social and environmental impact. AlphaMundi aligns its investments with the United Nations Sustainable Development Goals (SDGs) and supports enterprises dedicated to sustainability, advancing the growth of the green economy. The Social Alpha Fund, managed by AlphaMundi, invests in enterprises across Sub-Saharan Africa and Latin America that drive positive social impact in sectors such as financial inclusion, education, health, and renewable energy. By incorporating carbon certification and net-zero roadmaps into its investment framework, the fund reinforces its commitment to sustainability. This ensures that portfolio companies not only achieve economic success but also contribute meaningfully to climate resilience and a healthier planet. “This collaboration with Green Initiative is AlphaMundi Group’s first attempt to deliver specialised technical assistance related to climate change mitigation through decarbonisation roadmaps and carbon footprint certification. We look forward to seeing the results of GI advisory pilots with select portfolio companies in 2025 to inform a more sistematic approach across our global SME portfolio from 2026 onwards.” Tim Radjy – Chairman, AlphaMundi Group Ltd. Tim Radjy is the Founder and a Managing Partner at AlphaMundi Group (AMG) in Switzerland since 2008, a board member of AlphaMundi Foundation (AMF) since 2017, the Chair of the SocialAlpha Investment Fund (SAIF) in Luxembourg that he created in 2009, the Chair of the AlphaJiri Investment Fund (AJIF) investment committee in Mauritius since fund inception in 2019. Building a Sustainable Future Together As we strive for a more sustainable future, partnerships like this between Green Initiative and AlphaMundi will play a pivotal role in directing financial resources toward impactful climate solutions. By supporting high-impact businesses and fostering decarbonization efforts, these collaborations will accelerate the transition to a low-carbon economy and enable us to confront the global climate crisis. Together, we can drive significant progress and create a more sustainable and resilient world. “The challenge of securing finance for companies that deliver net-positive benefits for climate, nature, and society is immense and requires collective action to accelerate progress toward a low-carbon economy. Green Initiative’s partnership with AlphaMundi and AlphaMundi Foundation aims to overcome these barriers by mobilizing impact investment funds, driving innovation, and scaling climate mitigation finance in Latin America and Africa.” Giovanni Ginnatta – Head of Climate Mitigation Finance at Green Initiative Contact us to learn more about our certification services, and receive expert climate and nature positive advice for your business organization in becoming Climate Positive, Carbon Neutral or Carbon Measured certified.

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Celebrating World Tourism Day with a Global Milestone: Green Initiative Wins as World’s Leading Sustainable Organisation

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On this World Tourism Day, Green Initiative is honored to share a significant achievement: winning as the World’s Leading Sustainable Organisation at the 2024 World Sustainable Travel & Hospitality Awards! This recognition underscores our commitment to a greener, more sustainable tourism industry that regenerates rather than depletes. We extend our deepest gratitude to everyone who voted for us and supported our mission to lead the way in sustainable tourism, climate, and nature positive business. This achievement is as much yours as it is ours!” A Legacy of Impactful Tourism Green Initiative has always believed that tourism can be a driving force for good. We’ve pioneered sustainable tourism practices that balance business competitiveness with ecological preservation through our work with partners like Inkaterra Hotels, WorldXchange, and CEPA (Customized Educational Programs Abroad). What It Means to Be the World’s Leading Sustainable Organisation Winning this prestigious award is more than a recognition—it’s a reminder of our responsibility. From reducing the carbon footprints of our certified businesses to pioneering regenerative tourism models, we’ve made great strides in proving that tourism can benefit both people and the planet. Our Ongoing Commitment As we celebrate this milestone, we reaffirm our dedication to continuing our work with partners and clients worldwide to reduce emissions, restore ecosystems, and create sustainable livelihoods for local communities. As we mark World Tourism Day and celebrate this momentous win, we invite you to be part of this journey. Let’s work together to make travel sustainable, responsible, and regenerative—so that future generations can continue to explore the world while preserving its natural beauty. Designated Sites are Integrating Climate Action UNESCO-designated sites like Bonito and Machu Picchu are leading the way in integrating climate action into tourism through innovative practices such as carbon measurement, ecosystem restoration, and waste management solutions. By adopting climate-smart approaches, these destinations are not only reducing emissions but also enhancing community resilience and attracting eco-conscious travelers. Green Initiative’s collaboration with these iconic sites showcases how tourism can actively contribute to global climate goals and serve as a model for sustainable tourism worldwide. Explore our full article to learn how UNESCO Sites Are Pioneering Climate Action in Sustainable Tourism, and leading by example here. We highly recommend downloading Green Initiative’s Climate Action Guide for Tourism Destinations. This essential resource offers practical tools for reducing emissions, improving resource efficiency, and aligning with global climate goals. By following the guide, destinations can enhance resilience, attract eco-conscious travelers, and lead in sustainable tourism. It’s a must-have for those committed to making a positive impact. Contact us to learn more about our projects, certifications, and how we’re working with companies globally to shape a sustainable tourism industry.

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What Are Green Bonds and Why Are Prices So Low?

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In recent years, green bonds have become a powerful financial instrument, playing a key role in addressing the global challenge of climate change and funding sustainability projects. These bonds support environmentally beneficial initiatives such as renewable energy, biodiversity conservation, and sustainable infrastructure, offering both financial returns and a tangible positive impact on the environment. Despite the promise they hold, green bond prices have been lower than expected due to several market factors. However, the future of green bonds is incredibly bright, with a growing alignment between investor demand and sustainability objectives. Understanding Green Bonds Green bonds operate like traditional bonds but serve a higher purpose—financing projects dedicated to environmental sustainability. Governments, corporations, and institutions issue these bonds to fund projects such as renewable energy development, energy efficiency improvements, and biodiversity conservation initiatives. Green bonds provide an innovative solution to global environmental issues, allowing investors to support the transition to a low-carbon economy while securing returns. Moreover, the market for green bonds is expanding rapidly. With governments and corporations pledging to meet net-zero emissions targets, the demand for green financing climate and nature positive instruments is expected to continue accelerating. Green bonds are thus well-positioned to become a mainstream financial tool for a sustainable future. Why Are Green Bond Prices So Low? Several factors explain why green bond prices have been lower recently: Increasing Supply of Green Bonds As the issuance of green bonds has surged globally, supply now outpaces demand in certain markets. However, this increase in supply is a positive sign that sustainability-focused financing is becoming mainstream. As more investors adopt ESG (Environmental, Social, and Governance) strategies, demand for green bonds is expected to catch up, potentially driving prices higher in the future. Rising Interest Rates Like all fixed-income instruments, green bonds are affected by interest rates. In a rising rate environment, newly issued bonds offer higher yields, making older green bonds less attractive. However, this is a temporary challenge. As central banks stabilize interest rates, green bonds—especially those tied to long-term climate and nature positive environmental projects—will regain their appeal. Perceived Risk of Green Projects While some green bonds finance projects in emerging sectors or developing regions, where risks may be perceived as higher, this is also an opportunity. Investors who understand the long-term potential of green technologies and climate and nature positive sustainability initiatives recognize that these bonds support transformative projects that can generate both environmental and economic returns. Greenium and Market Maturity The concept of greenium, or the premium investors have historically paid for green bonds, is evolving. As the green bond market matures and expands, greenium has diminished, making these bonds more accessible. This signals a healthy market transition, where green bonds no longer command higher prices but instead offer competitive returns, aligning with the expectations of mainstream investors. Greenium and ESG Investment Strategies Green bonds are increasingly attractive to investors seeking to align their portfolios with ESG goals. The diminishing greenium, while lowering bond premiums, actually enhances the accessibility of green bonds, offering competitive returns without sacrificing sustainability. As the market for green finance grows, companies with high ESG commitments, particularly climate and nature positive, are likely to attract more capital, driving even more innovation and positive environmental impact. For investors with a long-term view, green bonds provide a unique opportunity to support projects with positive externalities while maintaining attractive returns. This alignment of financial and environmental performance makes green bonds a compelling part of any sustainable investment strategy. A Quote on Brazil’s Green Bond Market Green bonds have emerged as an essential tool for financing sustainable projects, significantly contributing to the transition to a low-carbon economy. In Brazil, the green bond market is still in its growth phase but already shows enormous potential. Since the first issuance in 2015, the country has accumulated around USD 11.2 billion in issuances. The growth of this market in Brazil is driven by the increasing demand for sustainable investments, both from institutional investors and individuals concerned about the environmental impact of their investments. Additionally, the greenium, which is the price premium that investors are willing to pay for green bonds, is directly related to the supply and, more importantly, the demand for these bonds. This phenomenon is reinforced by the commitments made by large asset managers and financial institutions to direct resources towards projects that promote sustainability. With the growing awareness of climate change and the need for concrete actions, the green bond market in Brazil has significant room for growth. The expectation is that, with favorable public policies and the continuous engagement of the private sector, we will see a substantial increase in green bond issuances in the coming years, contributing to a more sustainable and resilient future. Quotes Marcos Lima, ESG Finance and Investment Banking – Lecturer at FEBRABAN and Coordinator of Sustainable & Climate Finance at BV Bank. A Bright Future for Green Bonds Looking ahead, the future of green bonds is incredibly promising. Several factors will fuel their growth: Increasing Regulatory Support Governments are implementing policies to promote sustainable finance, including green bonds. The European Union’s Green Bond Standard is setting the stage for stronger frameworks that ensure the transparency and integrity of green bonds. These regulations will encourage more issuers to enter the market and provide investors with confidence in the impact of their investments. Climate Commitments and Global Demand With global climate commitments like the Paris Agreement pushing governments and corporations to reduce carbon emissions, the demand for green finance will only grow. Green bonds are at the forefront of financing this transition, offering an efficient way to raise capital for large-scale environmental projects. Investor Appetite for Sustainable Assets As more investors integrate sustainability into their strategies, green bonds will continue to be a key part of the solution. The narrowing greenium makes these bonds more attractive to a broad range of investors, enabling green bonds to move from a niche product to a mainstream asset class. This growing demand, coupled with an increase in green bond issuance, is expected

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Mobilizing Financial Resources for Biodiversity Conservation: Challenges and Imperatives

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Biodiversity and ecosystem health are the foundation for sustainable development, playing a pivotal role in securing our common future. Recognizing the importance of financing conservation efforts, Agenda 2030 established Sustainable Development Goal (SDG) 15.a to mobilize substantial financial resources to preserve and sustain biodiversity and ecosystems. However, the journey toward achieving this target has complexities and challenges. A significant one is the mobilization and alignment of financing – not only sourcing funds, but also ensuring that they are properly directed towards initiatives that protect and enhance biodiversity. SDG 15.a provides the financial underpinning for the broader aspiration of protecting life on earth embodied in SDG 15. Despite some progress, a significant funding gap remains for biodiversity conservation. Estimated global biodiversity finance currently stands between $78–91 billion annually, falling significantly short of the projected need of $700 billion USD per year identified in the Kunming-Montreal Global Biodiversity Framework (GBF) of the Convention on Biological Diversity. Moreover, funding for biodiversity conservation competes with subsidies and support directed at activities that harm ecosystems, including industrial agriculture, energy, forestry, and mining. Despite the gradual increase in international public funding for biodiversity, there are disparities between countries. While bilateral official development assistance (ODA) has risen sharply, domestic funding in several countries has stagnated or declined, exacerbating the global funding gap. This underlines the urgent need for a strategic reassessment and recalibration of financial priorities by governments and underscores the need to increase the use and ambition of biodiversity-relevant economic instruments to effectively achieve conservation goals. A critical gap in Target 15.a is the absence of specific quantitative goals, unlike the target of $100 billion USD agreed upon at the 2009 climate change negotiations. This absence creates ambiguity, leading to concerns about the potential double counting of resources allocated to other objectives and tensions arising from differing interpretations of financial mobilization efforts. These challenges demand resolution as the global community begins to work on achieving the 2030 goals and targets of the Kunming-Montreal GBF. Addressing the shortfall in financial commitments, fostering coherence in funding strategies, and delineating a universally accepted quantitative target for resource mobilization are imperative steps. Addressing the gap in SDG 15.a, Target 19 of the GBF aims for the mobilization of $200 billion annually for biodiversity from all sources, including $30 billion through international finance. Collaborative efforts among countries, multilateral institutions, private actors and civil society will be needed to bridge the gap between aspirations and reality. Creating innovative financing mechanisms, providing incentives for sustainable practices, and redirecting subsidies away from harmful activities and towards financial incentives for practices that benefit biodiversity will encourage more sustainable behavior. In conclusion, while the commitment to mobilize financial resources for biodiversity conservation and sustainability is clear, realizing this ambition requires collective and concerted action. It requires a paradigm shift in financial priorities, a recalibration of resource allocation strategies, and a shared commitment, including from the private sector, to safeguard our planet’s biodiversity for present and future generations. Navigating Financial Pathways for Biodiversity Preservation Securing the right funding is of paramount importance in the quest to protect our planet’s biodiversity. Our advisory services specialize in navigating these complexities and bridging the gap between aspiration and reality. By leveraging collective efforts and innovative mechanisms, we work toward aligning financial priorities and directing resources to achieve sustainability. Contact us to embark on this critical journey together, paving the way to achieving the SDGs and fostering a healthier, more vibrant planet for present and future generations. Written by Frédéric Perron-Welch, Head of Climate and Nature Policy from the Green Initiative Team. Image credits: Inkaterra Hotels Related articles

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Inter-American Development Bank Launches BID CLIMATE Program with Nine Partner Nations

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In a groundbreaking move towards combating climate change, the Inter-American Development Bank (IDB) unveiled its pioneering initiative, the BID CLIMATE pilot program. This innovative financial endeavor aims to incentivize and support nations in their pursuit of environmental and climate-related goals. Announced on December 2, 2023, in Dubai, the IDB highlighted the participation of the first nine eligible projects as a significant milestone in the fight against climate challenges. The BID CLIMATE program marks a transformative approach in financial assistance, providing borrowers with a remarkable benefit: a 5% grant of the IDB loan principal. This strategic move aligns with the overarching goal of mobilizing resources for climate and nature-centric investments on a larger scale. Initially allocating a substantial $1 billion in loans, the program will kickstart ten pilot projects aimed at catalyzing sustainable initiatives. The President of the IDB, Ilan Goldfajn, expressed immense satisfaction with the enthusiastic response received at the United Nations Climate Change Conference, COP28. “The demand has exceeded our expectations, demonstrating a collective commitment to address climate and nature-related challenges. Our teams are actively collaborating with regional partners to initiate these transformative pilot projects,” Goldfajn remarked. To access this pivotal benefit, participating nations must meet three Key Performance Indicators (KPIs) specially designed to facilitate their engagement with green and thematic debt markets. These KPIs center around establishing ambitious environmental objectives, devising suitable policies and expenditures, and ensuring effective measurement and reporting mechanisms for their progress. The nine pioneering countries partaking in the BID CLIMATE program—Barbados, Belize, Brazil, Chile, Colombia, Paraguay, Dominican Republic, Suriname, and Uruguay—herald a collective commitment to proactively combat climate change and preserve nature’s integrity. Meanwhile, Latin America and the Caribbean stand prominently at COP28, contributing a multifaceted approach to tackle global climate challenges. The IDB’s Americas Pavilion serves as a pivotal platform, hosting over 30 events featuring global leaders and experts. These events span a wide spectrum, encompassing discussions on cutting-edge financial instruments, sustainable resource management, just economic transitions, and initiatives for preserving the Amazon rainforest. Journalists covering COP28 have open access to the pavilion’s events, facilitating comprehensive coverage of these critical discussions and initiatives. The IDB, established in 1959, remains committed to enhancing lives across Latin America and the Caribbean. Beyond financial assistance, the IDB spearheads research endeavors, offers policy recommendations, extends technical support, and provides training to both public and private entities throughout the region. Its unwavering dedication underscores a collective effort towards sustainable development. As the BID CLIMATE program takes flight, supported by nations committed to combating climate change, it marks a significant stride towards a more sustainable and resilient future for generations to come. For more information about the BID CLIMATE program contact Anspach,Raphael Philippe M. (raphaela@iadb.org) or Borges De Padua Goulart Janaina (janainag@iadb.org). You can also contact one of BID local offices. Source: BID

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World exchange becomes Carbon Neutral certified

WorldXchange becomes Carbon Neutral Certified

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Worldxchange is the first Currency Exchange House in the world to reach the Carbon Neutral Certification The Company WorldXchange, a foreign currency exchange house with more than 40 years of experience in the national market. Conveniently located in the country’s main airports, our services are characterized by their reliability, agility, and competitiveness. The company´s ISO 9001 certification ensures compliance with high-quality standards. It guarantees commitment and continued improvement. Tourism is one of the most critical sectors for the country’s economic recovery. It provides outstanding contribution to generating work and income opportunities. Peru needs to promote the reactivation of Tourism in a different way. Namely, by internalizing the lessons that COVID-19 has left us. Lessons Learned One of the ways to promote the recovery of tourism activity is by supporting the international climate agenda. WorldXchange understands that the Peruvian tourism sector must engage in a sustainable development path. This is by adopting smart climate action practices that will contribute with efficiency and innovation – Building Tourism Back Better. The tourism sector of Peru has been taking significant steps in this direction. The certification of Machu Picchu as the first carbon-neutral UNESCO Designated Site is perhaps the best example for this. This good news has spread worldwide and has given our emblematic heritage site access to financing sources and international recognition. Like National Geographic, Lonely Planet, United Nations Climate Change, and the World Tourism Organization. At WorldXchange we believe that this effort is consistent with the current needs of tourism industry and needs to be widely supported by all tourism stakeholders, including airports, hotels, tourism operators and agencies, transport, and the entire set of organizations that make up the value chain. In this context, WorldXchange has been working with Green Initiative to introduce climate action at the core of its business model. “One of the lessons that Covid-19 leaves us is that from wherever we are, we must do things differently. At WorldXchange we are committed to the reactivation of tourism with climate responsibility. Responsible companies must support intelligent and climate-responsible economic reactivation. From which, we all benefit. This is our great challenge today.” Raul Villa Green Initiative is very proud to announce that WorldXchange is the first Currency Exchange House in the world to reach the Carbon Neutral Certification. Engage Learn how to engage your Travel Business into a New Level of Leadership and Competitiveness. Become Climate Positive, Climate Neutral and Climate Measured certified here.

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