climate finance Archives - Green Initiative - For a Climate and Nature Positive Planet

A professional corporate interior showing a digital display with a decarbonization graph and a green holographic globe, illustrating the backcasting climate methodology for net-zero alignment.

Backcasting from Net-Zero: When to Demand Science-Based Ambition

Net-zero alignment represents the highest level of climate ambition for modern organizations. While many firms start with incremental improvements, leading enterprises adopt a strategic methodology known as backcasting. This approach starts with a vision of a decarbonized future and works backward to identify the necessary steps to reach that goal today. For financial institutions, backcasting serves as the primary tool for identifying borrowers who are truly committed to long-term sustainability and systemic change. Traditional business planning often relies on forecasting, which projects future performance based on current trends and historical data. While useful for short-term operations, forecasting often fails to account for the radical shifts required by the global energy transition. Backcasting solves this problem by centering the planning process on a fixed, science-based destination, such as achieving net-zero emissions by 2050. This approach ensures that every interim milestone contributes directly to the final objective. Why Backcasting Matters for Climate Finance The backcasting climate methodology is essential for mitigating transition risks within a financial portfolio. As global regulations tighten and carbon prices rise, businesses that rely on incremental forecasting risk becoming stranded assets. Backcasting forces an organization to confront the structural changes needed for survival in a low-carbon economy. Financial institutions use this methodology to verify the “Net-Zero ambition” of their largest clients. It provides a rigorous framework to ensure that a company’s long-term goals are more than mere marketing claims. By demanding science-based ambition, lenders protect their capital from the volatility of the fossil fuel phase-out. How to Implement the Backcasting Process Implementing a backcasting framework requires a shift in organizational mindset from “what is likely” to “what is necessary.” Lenders should look for the following five steps in a borrower’s strategic plan. Step 1: Define the Desired Future State The process begins with a clear, time-bound definition of success. For most organizations, this is a state where GHG emissions are reduced to the absolute minimum, with any residual emissions neutralized through high-quality carbon removals. The borrower must specify the target year, typically 2040 or 2050, in alignment with the Paris Agreement. Step 2: Characterize the Decarbonized Business Model The organization must describe how it will operate in the target year. This includes identifying the primary energy sources, the level of energy efficiency achieved, and the technological innovations required. A manufacturer, for example, might envision a future state where 100% of process heat comes from green hydrogen. Step 3: Work Backward to Identify Strategic Milestones Once the destination is clear, the organization works backward to set interim targets. These milestones act as “checkpoints” to ensure the company remains on the science-based pathway. Common intervals include 5-year and 10-year targets that satisfy the requirements of the absolute contraction method. Step 4: Conduct a Gap Analysis By comparing the future state with the current operational baseline, the borrower identifies the “innovation gap.” This step highlights the specific areas where the business requires new technology, policy changes, or significant capital investment. Identifying these gaps early allows financial institutions to structure the appropriate climate finance products to bridge them. Step 5: Develop the Immediate Action Plan The final step is translating the long-term vision into immediate operational tasks. This results in a Climate-Mitigation Action Plan (CMAP) that outlines the specific investments needed over the next 12 to 36 months. This plan must align with the broader Science-Based Target Setting Methodologies. When to Demand Backcasting from Borrowers While the Forward-looking methodology is suitable for many SMEs, certain scenarios require the more rigorous backcasting approach. Lenders should prioritize backcasting in the following situations: Risk Mitigation Benefits for Financial Institutions Demanding science-based ambition through backcasting provides three critical benefits to a lender’s portfolio: Conclusion The backcasting climate methodology is the gold standard for organizations aiming for Net-Zero leadership. By starting with the end in mind, businesses move beyond incrementalism and begin the deep work of transformation. For financial institutions, verifying this ambition is the most effective way to align portfolios with the global climate transition and secure long-term financial performance. This article was written by Matheus Mendes from the Green Initiative Team. Related Reading

Backcasting from Net-Zero: When to Demand Science-Based Ambition Read More »

Close-up of an industrial IoT sensor attached to a tree, representing automated Digital MRV (dMRV) in a forest.

MRV Systems: Building Infrastructure for Performance-Based Climate Finance

Leave a Comment / Green Initiative

The global transition to a net-zero economy has triggered a structural shift in climate finance. While early instruments focused on “Use of Proceeds”—where funds are earmarked for specific green projects—the market is rapidly maturing toward performance-linked products, such as Sustainability-Linked Loans (SLLs) and Sustainability-Linked Bonds (SLBs). In these structures, financial incentives—typically interest rate margins—are tied to the borrower’s achievement of predefined Sustainability Performance Targets (SPTs). To scale these instruments with integrity, financial institutions (FIs) require a robust Monitoring, Reporting, and Verification (MRV) infrastructure. As noted by the LSE Grantham Research Institute: “These margin ratchets can shift adaptation from a discretionary initiative to a priced managerial obligation, making climate resilience a financial variable rather than a reputational afterthought”. The MRV Infrastructure Roadmap: From Manual to Automated Building an MRV system for climate finance is an evolutionary journey. FIs must navigate three primary levels of sophistication to bridge the information gap between project sites and capital markets. Phase 1: Manual and Episodic Systems Traditional MRV relies on manual data collection, often involving paper logs, site visits, and spreadsheets. In this phase, verification is periodic and the “audit lag” can be significant, with verification cycles taking 12 to 24 months. While accessible for small portfolios, this manual approach is labor-intensive and prone to human error, creating asymmetric information risks that can lead to disputes over interest rate adjustments. For smallholder land-owners and project developers, these manual registration and audit costs are often “prohibitively expensive,” sometimes consuming 30–40% of total project revenues. Phase 2: Digitalized and Integrated Systems As portfolios grow, FIs transition to digitalized systems that utilize cloud-based databases and standardized reporting frameworks. This phase involves aligning borrower data with global standards like the Greenhouse Gas (GHG) Protocol and the Partnership for Carbon Accounting Financials (PCAF) to track financed emissions. Digital platforms begin to integrate third-party data, such as satellite-derived land-use changes, providing a more consistent baseline for performance tracking. Phase 3: Automated and Real-Time Systems (dMRV) The frontier of MRV infrastructure is the Digital MRV (dMRV) system. By “bridging the gap between real-world climate action and verifiable digital assets,” dMRV leverages the Internet of Things (IoT), Artificial Intelligence (AI), and blockchain. Automated sensors, such as smart meters on renewable installations, stream data directly into digital systems. This reduces verification cycles from years to months or even minutes, enabling dynamic financial modeling. Machine learning algorithms in these systems can boost audit accuracy by an estimated 79% over traditional manual samples. Infrastructure Phase Data Source Verification Cycle Primary Risk Manual Paper logs / Spreadsheets 12–24 Months Human error / Tampering Digitalized Cloud-based databases 6–12 Months Data fragmentation Automated (dMRV) IoT Sensors / Satellites 1–3 Months / Real-time Cybersecurity / Algorithm bias Core Components of the “Truth Layer” To structure performance-linked products with confidence, FIs must establish a reliable “truth layer” across three core infrastructure components: 1. High-Integrity Baselines and Performance Targets Every performance-linked product starts with a counterfactual baseline. In manual systems, research shows that median baseline uncertainty can span 171% of the mean estimate. High-integrity infrastructure uses multi-model ensemble approaches and historical geospatial data to reduce this variability and prevent over-crediting. Targets must be “SMART” (Specific, Measurable, Achievable, Relevant, and Time-bound). Furthermore, investors are increasingly distinguishing between “impact materiality” (stakeholder impact) and “financial materiality” (enterprise value) to ensure KPIs directly influence financial resilience. 2. Standardized Data Middleware Confidence requires seamless data flow between the project site and the FI’s core banking system. Middleware solutions act as “translators” between diverse digital dialects, such as mobile apps in JSON and legacy core systems in COBOL or XML. This architecture allows FIs to monitor portfolios and execute “internet audits” without disrupting their core financial data integrity. 3. Independent Verification Protocols The ultimate guarantor of trust is the third-party verifier. For performance-based finance, verifiers (VVBs) must be accredited under international standards such as ISO 14064-3 and ISO 14065. Beyond accreditation, VVBs must adhere to rigorous principles of “professional skepticism” and “impartiality,” ensuring that findings are objective and free of bias. Unlocking the “Last Mile”: The SME Finance Paradox Small and Medium-Sized Enterprises (SMEs) represent over 90% of the global productive fabric and serve as the “last mile” where national climate commitments translate into real economic action. However, a structural paradox currently restricts their access to capital: SMEs cannot access climate finance because they lack reliable emissions data and technical capacity, and they cannot build that capacity because they lack the finance to do so. Bridging this gap requires aligning financial architecture with SME realities by simplifying processes, standardizing disclosure criteria, and reducing transaction costs. Frameworks such as the Climate Mitigation Finance Guide provide actionable roadmaps to translate these transition ambitions into scalable, bankable assets for the global market. Financial Impact of Automated Infrastructure The integration of advanced technologies transforms MRV from a compliance burden into a financial strategic asset by fundamentally altering the speed and reliability of performance-based contracts. By codifying loan terms into blockchain-based smart contracts, financial institutions can automate “margin ratchets,” allowing interest rate adjustments to be triggered the moment a performance target is verified on-chain. This eliminates the traditional “audit lag” and prevents significant revenue leakage that often occurs from delayed incentive payouts. Furthermore, the use of decentralized oracles ensures that real-world sensor data is immutably bridged to these contracts, providing a single source of truth that near-eliminates audit disputes and manual back-office errors. Digital automation also serves as a critical enabler for scaling climate finance toward underserved segments. By reducing verification costs by an estimated 50–70%, automated systems make small-ticket sustainability-linked loans and micro-finance for SMEs commercially viable for the first time. Early adopters like BNP Paribas have already reported process efficiency gains of over 40% through pilot programs that minimize manual touchpoints in the loan lifecycle. This efficiency allows banks to lower the high “cost to serve” that previously barred smallholder project developers from participating in the carbon economy. Finally, the transition to continuous verification through IoT sensors and satellite imagery paves the way for sophisticated dynamic pricing models. Rather than

MRV Systems: Building Infrastructure for Performance-Based Climate Finance Read More »

Why SMEs Still Struggle to Access Climate Finance

Leave a Comment / Green Initiative

From a climate perspective, we are living through a decisive moment—one in which the prioritization of the climate agenda is no longer optional. In 2024, global average temperatures surpassed 1.5°C above pre-industrial levels for the first time. Wildfires, floods, and droughts have ceased to be exceptional events and are now recurring signals of a climate transformation advancing faster than the international community has been able to respond. It is true that meaningful progress has been made toward economic decarbonization. However, this progress has not occurred at the speed or scale required. While multilateral frameworks have helped avert even more critical scenarios, the current trajectory continues to drift away from the mitigation targets necessary to stabilize the climate and reduce the systemic risks facing societies and economies worldwide. SMEs: The Missing Link in the Climate Transition In this context, small and medium-sized enterprises (SMEs) could—and should—play a far more central role in the global decarbonization agenda. SMEs account for over 90% of the global productive fabric, generate more than half of all jobs, and sustain supply chains that connect territories, sectors, and markets. Their capillary presence in cities, rural regions, and production hubs gives them a role no large corporation can replace. SMEs are the “last mile” of the climate transition—the point where national commitments translate into real economic action, and where decarbonization becomes tangible in terms of competitiveness, resilience, and long-term viability. Yet despite this central role, climate mitigation finance is not reaching SMEs at the scale or speed the climate crisis demands. A Structural Paradox in Climate Finance The paradox is clear:Climate finance exists. Commitments have multiplied. Pressure to transition toward low-carbon models continues to grow. And yet, SME participation in climate finance mechanisms remains marginal. This disconnect is not primarily due to a lack of financial resources or insufficient climate ambition. Rather, it stems from a combination of structural, technical, and operational barriers—most notably, a well-documented technical capacity gap. To access climate finance, companies must demonstrate mitigation potential in a robust and verifiable manner. This typically requires: Most SMEs simply do not have these elements in place. They lack emissions inventories, technical teams, standardized tools, and the capacity to monitor and verify impact. This mismatch between what financiers require and what SMEs can provide explains why effective demand remains low—even in the presence of abundant climate capital. The Financial Sector’s Challenge From the perspective of financial institutions, the challenge is equally significant. Without standardized, comparable, and verifiable data, it becomes difficult to assess risk, estimate mitigation returns, and structure suitable financial products. The absence of shared criteria—regarding what qualifies as a mitigation activity, how impact should be measured, or what minimum information companies must disclose—raises transaction costs and increases uncertainty. In an environment of growing regulatory pressure and transparency expectations, this gap discourages capital allocation to SMEs, despite their enormous mitigation potential. A Vicious Cycle of Exclusion The outcome is a self-reinforcing cycle: As a result, the international climate finance architecture inadvertently reproduces structural inequity. The very enterprises best positioned to deliver territorial decarbonization are those facing the greatest barriers to participation. The Opportunity We Are Missing This reality stands in stark contrast to the scale of the opportunity. SMEs can reduce emissions through: When these interventions are facilitated, supported, and scaled, their aggregate impact can significantly accelerate the transition toward resilient, low-carbon economies. Excluding SMEs does not only delay climate action—it weakens the competitiveness of key productive sectors, undermines employment, and limits alignment with international decarbonization standards that increasingly shape global trade. Why the Gap Persists—and How to Close It The central question is unavoidable: why do SMEs struggle to access climate finance? One critical answer is that current financial mechanisms were designed for companies with robust structures, specialized teams, and the capacity to comply with complex monitoring and verification standards. Until these mechanisms are adapted to the scale, realities, and dynamics of SMEs, the gap will persist. The good news is that this challenge is not irreversible. It is fundamentally a matter of strategy and opportunity. Aligning climate finance architecture with SME realities—by simplifying processes, generating reliable data, integrating technical assistance, standardizing criteria, and reducing transaction costs—is essential to unlocking their role as climate leaders. Green Initiative’s Role in Bridging the Gap In 2025, Green Initiative was recognized at the Sustainable Finance Awards as a leading organization in advancing climate-aligned financial solutions (category to be finalized). 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. Green Initiative works globally to support financial institutions seeking to close the SME climate finance gap through: Currently, Green Initiative is collaborating with international partners on the publication of Climate Mitigation Finance: A Practical Guide for Financial Institutions & SMEs, scheduled for release in the first half of 2026. This guide aims to provide actionable frameworks that translate climate ambition into real, scalable financial access for SMEs worldwide. When financial systems evolve to meet SMEs where they are, these enterprises will not merely access climate finance—they will help lead the climate transition from the ground up, exactly where impact matters most. Ready to unlock climate finance for SMEs?Contact Green Initiative to explore how technical assistance, data transparency, and climate certification can turn ambition into bankable climate action. This article was written by Tatiana Otaviano Luiz from the Green Initiative Team. Related Reading

Why SMEs Still Struggle to Access Climate Finance Read More »

COP30 in Brazil: The Moment to Deliver on Climate Promises

Leave a Comment / Green Initiative

The Conference of the Parties (COP) brings together governments, international organizations, and non-state actors to assess global progress and negotiate collective measures under the Paris Climate Agreement The 30th United Nations Climate Change Conference (COP30) begins today in Belém do Pará and, for the first time, the opening takes place on schedule. After intense negotiations over the weekend, the agenda was confirmed, signaling diplomatic maturity and a renewed sense of collective purpose. Three central themes will guide the coming days: At the heart of these discussions lies a key challenge: multilevel governance how to turn political commitments into mechanisms that are executable, measurable, and comparable across countries and sectors. Ten Years After Paris: From Ambition to Action The Conference of the Parties (COP) brings together governments, international organizations, and non-state actors to assess global progress and negotiate collective measures under the Paris Climate Agreement Ten years after the signing of that agreement, experience shows that the transition toward a low-emission economy is no longer a utopia but a strategic priority driving a global race for innovation, productivity, and competitiveness. However, this race advances unevenly largely reflecting the typical dynamics of any (r)evolutionary industrial shift: a struggle between those striving for a future powered by new opportunities and technologies, and those seeking to preserve the status quo, delaying technological and sociocultural change as long as possible to avoid transformation. Beyond the motives or interests, strategic or otherwise, the goals and commitments assumed by different sectors of society have not achieved the necessary level of progress, and the results remain far from those originally pledged.. The Urgent Reality of a Warming Planet According to the IPCC, the planet has already warmed by approximately 1.1°C above pre-industrial levels, and current projections indicate that keeping warming below the 1.5°C threshold set by the Paris Agreement will be difficult before mid-century. Recent data from the Copernicus Climate Change Service (C3S) further underscores this urgency. These data confirm that the current framework of regulatory and voluntary commitments — along with existing performance systems is insufficient when faced with the speed and scale of the climate challenge. The gap between promises and real implementation often translated into greenwashing has, in many cases, become the main obstacle to achieving an effective transition. At Green Initiative, we see this credibility gap as the defining test of our time. Climate action is no longer about announcing goals, but about demonstrating verifiable progress — where measurement, certification, and transparency become the true language of trust. COP30: Brazil Takes the Lead in Turning Words into Results In this context, COP30 — to be held in Belém do Pará, Brazil, from 10 to 21 November 2025 — assumes a decisive role by promoting a shift in approach: complementing statements and ambitions, which remain essential, with concrete and pragmatic action, which is now urgent. As the host nation, Brazil intends to place forests and nature-based solutions at the heart of the global debate, highlighting the Amazon as a living symbol of both vulnerability and opportunity in the fight against climate change. “A successful COP30 will depend on the ability to translate ambition into credible delivery.” Companies and governments alike are expected to strengthen climate disclosure and performance standards, aligning them with national regulatory frameworks — especially in emerging markets — and demonstrating traceable, verifiable progress across their value chains. At the same time, the expansion of climate finance, particularly through blended instruments and public-private investment vehicles, will be key to mobilizing capital toward sectors vital for decarbonization and resilience. Financing Adaptation and the Just Transition The conversation will also broaden to include adaptation financing, a critical gap as global needs — estimated at over US$ 300 billion per year by 2035 — far exceed current commitments. In parallel, energy transition debates are expected to gain momentum, with biofuels, renewable energy, and infrastructure modernization taking center stage. The principle of a “just transition” will continue to gain prominence, integrating social equity, workforce adaptation, and community engagement as fundamental components of climate credibility. The Private Sector: From Ideology to Competitiveness For the private sector which increasingly recognizes that the climate agenda extends beyond ideology COP30 should reinforce the logic of competitiveness and the advantages of early movers: those who anticipate market shifts, invest in resilience, and position their organizations as leaders in the emerging low-carbon economy. At Green Initiative, we have witnessed how companies and destinations that embed transparency into their climate journey gain both reputation and resilience. The capacity to measure, verify, and communicate progress is no longer a differentiator — it is a prerequisite for participation in the next economy. Green Initiative: Bridging Ambition and Impact At Green Initiative, we share this conviction. Through our Climate Certification Programs, Climate Performance Platform, and strategic advisory services, we help organizations and destinations: By turning commitments into measurable, verifiable, and transparent climate action, we advance a climate- and nature-positive global economy — one where progress and prosperity align with the protection of our planet. This article was written by Karla de Melo from the Green Initiative Team. Related Reading

COP30 in Brazil: The Moment to Deliver on Climate Promises Read More »

Reputation, Soft Power, and Multilevel Governance: Tourism as a driver of the decarbonization economy

Leave a Comment / Green Initiative

The Paris Agreement set an ambitious target: limiting global warming to 1.5°C by 2050. To achieve this, governments, companies, and society must act in coordination — and tourism, responsible for nearly 8% of global greenhouse gas emissions, is a critical part of the equation. At Green Initiative, we believe climate action goes beyond carbon accounting. It is also about reputation, soft power, and regenerative prosperity. As we often say: “We translate carbon into reputation, connecting territories to narratives of impact, and building bridges between climate action, trust, and the future.” The Reputation Economy in action We live in the era of the Reputation Economy: organizations and territories are evaluated by the trust they inspire, the consistency between discourse and practice, and their ability to generate positive impact. In this context, decarbonization is also a reputational strategy. Destinations that commit to transparent climate action not only reduce emissions but also earn legitimacy and influence. Reputation is the bridge that connects climate ambition, governance, and long-term competitiveness. Multilevel Governance as a differentiator & Soft Power The transition to carbon-neutral destinations requires multilevel governance: aligning local community commitments with national policies, multilateral frameworks, and global investors. This is the foundation of the Climate Action Guide for Tourism Businesses and Destinations, launched by Green Initiative in collaboration with UNEP, UN Tourism, UNCTAD, UNFCCC, and Brazilian partners. More than a technical tool, the guide is a political instrument: by strengthening collective commitments, it enhances the reputation of destinations and opens access to climate finance. Bonito, Brazil (MS) became the world’s first ecotourism destination to achieve carbon-neutral certification. Machu Picchu, Peru has also reached this milestone and will reaffirm it in November during the Climate Talks Machu Picchu 2025. More than a ceremony, the event will serve as a platform to discuss governance, sustainable logistics, and international reputation, showing how tourism can lead in decarbonization. The reputation challenge in Carbon markets A recent Nasdaq study stressed the urgency of scaling and ensuring liquidity in carbon markets. For tourism, this means the viability of decarbonization models depends not only on emission reductions but also on credible compensation mechanisms. The reputation of carbon credits will be the key dividing line between projects that deliver real impact and those at risk of greenwashing. This is why Green Initiative ensures certified, traceable, and internationally recognized credits, aligning tourism destinations with robust governance practices and investor expectations. November in Machu Picchu: a global milestone From November 4–6, 2025, Machu Picchu will host the 3rd Carbon Neutral Certification Ceremony, alongside the launch of Peru’s first Carbon Neutral Tourism Corridor, connecting Cusco, Machu Picchu, and Choquequirao. This moment comes at the right time: while operational challenges highlight the need to enhance visitor experience, the event demonstrates how to move forward with structured responses — combining decarbonization, reliable logistics, and transparent governance. The World Heritage and Emblemátic Sites Coalition – Climate Action in Tourism will be more than a climate commitment: it will be an invitation to continuous improvement in destination management, balancing preservation, access, and reputation. Held just days before COP30 in Belém, Brazil, the event will reinforce that cultural and natural heritage sites can lead the global climate agenda, translating soft power into cooperation and regenerative prosperity. According to UNESCO, climate change is already threatening many of the planet’s most iconic cultural and natural heritage sites. One in six World Heritage properties faces direct risks from climate impacts, while a third of World Heritage cities are located in coastal zones exposed to sea-level rise and extreme weather. By 2050, one third of the glaciers in these sites may disappear, and nearly all coral reefs within World Heritage areas are projected to experience major bleaching events. These alarming figures underscore the urgency of integrating climate governance and sustainable tourism into preservation strategies, ensuring that destinations like Machu Picchu not only safeguard their heritage but also lead global adaptation and mitigation efforts. Three reputation lessons for tourism destinations By integrating governance, reputation, and climate action, Green Initiative positions itself as a leader in a pioneering movement: turning destinations into ambassadors of the transition toward a climate-positive planet. In November, Machu Picchu will consolidate this model — and in Belém, during COP30, tourism can assert itself as a powerful platform for influence, trust, and sustainable competitiveness. This article was written by Karla de Melo from the Green Initiative Team. Related Reading

Reputation, Soft Power, and Multilevel Governance: Tourism as a driver of the decarbonization economy Read More »

Why Financial Institutions Should Measure Their Carbon Footprint?

Leave a Comment / Green Initiative

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

Why Financial Institutions Should Measure Their Carbon Footprint? Read More »

Welcoming Jorge Arbache as a New STAC Member at Green Initiative

Leave a Comment / Green Initiative

At Green Initiative, we are thrilled to welcome Jorge Arbache, Ph.D., as the newest member of our Scientific and Technical Advisory Committee (STAC). With his extensive expertise in development economics, sustainable finance, and green investments in emerging markets, Arbache brings invaluable insight to our mission of promoting climate-positive and nature-positive solutions worldwide. Who is Jorge Arbache? Connect with Jorge Arbache on LinkedIn to explore his insights and professional contributions. Jorge Arbache is a renowned economist with a distinguished career spanning academia, government, the private sector, and international organizations. His leadership roles include: Advancing Sustainable Investments and Green Finance Jorge Arbache has written extensively on sustainability and economic transitions. Check out his articles, also published on Green Initiative: His contributions to Valor Econômico, Brazil’s top business newspaper, highlight crucial trends such as powershoring, economic resilience, and investment strategies in Latin America and emerging economies. Strengthening Green Initiative’s Mission With Arbache joining Green Initiative’s STAC, we are strengthening our commitment to climate action, sustainability, and corporate responsibility. His expertise will help businesses, governments, and institutions develop science-based sustainability solutions that drive real impact and long-term resilience. Looking Ahead: A More Climate-Positive Future Jorge Arbache’s collaboration reinforces Green Initiative’s leadership in sustainability, climate finance, and corporate green transitions. His knowledge and strategic vision will play a crucial role in expanding our impact and fostering climate-positive solutions worldwide. We are honored to have him on board and look forward to innovating, collaborating, and creating a more sustainable future together. Stay Updated Follow Green Initiative for more insights on climate action, sustainability, and green finance. Stay informed about the latest developments in climate-positive business strategies and sustainability innovations.

Welcoming Jorge Arbache as a New STAC Member at Green Initiative Read More »

Global Climate Finance Research: Share Your Expertise in Sustainable Investments

Leave a Comment / Green Initiative

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.

Global Climate Finance Research: Share Your Expertise in Sustainable Investments Read More »

Nationally Determined Contributions (NDCs) in 2025: Progress, Challenges, and Global Impact

Leave a Comment / Green Initiative

What Are Nationally Determined Contributions (NDCs)? Nationally Determined Contributions (NDCs) are climate action plans submitted by countries under the Paris Agreement, an international treaty adopted in 2015 to limit global warming and strengthen global responses to climate change. to reduce greenhouse gas emissions and mitigate global warming. These commitments are crucial in the global fight against climate change, with periodic updates required to enhance ambitions and align with the 1.5°C target set by the United Nations Framework Convention on Climate Change (UNFCCC). The 2025 NDC Update: Where Do Countries Stand? As of February 2025, only 13 out of 195 signatory nations have submitted their updated NDCs ahead of the February 10, 2025, deadline. Among the leading countries to meet the submission deadline are: Are Current NDCs Enough to Meet the Paris Agreement Goals? Despite some progress, the overall global climate response remains inadequate. The UNFCCC warns that current national climate plans will only achieve a 2.6% reduction in global greenhouse gas emissions by 2030, far below the required 43% reduction needed to limit warming to 1.5°C above pre-industrial levels. Furthermore, extreme weather events, including record-breaking heatwaves and intensified hurricanes, underscore the urgent need for more aggressive mitigation efforts. The UNFCCC warns that current national climate plans will only achieve a 2.6% reduction in global greenhouse gas emissions by 2030, far below the required 43% reduction needed to limit warming to 1.5°C above pre-industrial levels. Key Challenges in Achieving NDC Targets The Role of COP30 in Strengthening Climate Commitments The upcoming COP30 conference in Brazil presents a critical opportunity to: Visit the COP30 Host Country site. Conclusion: Urgent Action Needed to Strengthen Global Climate Goals While countries like the U.S., Japan, and UAE have set ambitious emission reduction targets, the global response is still falling short. To prevent catastrophic climate impacts, immediate and intensified efforts are required to align with the Paris Agreement targets. The fight against climate change demands urgent, collective, and sustained action. Ready to align your practices with climate action? Contact us today to explore how Green Initiative can help you achieve measurable climate mitigation impact through responsible and transparent actions. Contact us at https://greeninitiative.eco/contact/ This article was written by Marc Tristant from the Green Initiative Team. Related Articles

Nationally Determined Contributions (NDCs) in 2025: Progress, Challenges, and Global Impact Read More »

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

Leave a Comment / Green Initiative

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.

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