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Clean editorial cover image for the Climate-Mitigation Finance Guide by Green Initiative, featuring sustainable finance trajectory curves and key stats on unlocking the $789 billion SME green funding market

Climate Mitigation Finance Guide: How SMEs and Banks Can Unlock the $789B Market

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Small and Medium-sized Enterprises (SMEs) are the beating heart of the global economy, representing over 90% of all businesses and more than 50% of total employment worldwide. Yet, they remain the “missing link” in the global transition to a low-carbon economy. While 73% of public and private financial institutions now offer sustainable finance products—creating an estimated $789 billion market opportunity—adoption among SMEs remains disproportionately low. Although overall SME interest in applying for climate-mitigation finance (CMF) rose to 27%, only 3% submitted formal applications, and a mere 1% successfully secured funding. The Climate Finance Drop-Off The gap between available sustainable funding and SME adoption 73% FIs Offer CMF Products ➔ 27% SME Interest Rate ➔ 3% Submitted Applications ➔ 1% Funding Secured Why does this massive gap exist? The primary bottleneck is Measurement, Reporting, and Verification (MRV). Lenders require standardized, science-backed carbon data, while SMEs face technical and administrative hurdles that make traditional compliance nearly impossible. To solve this challenge, Green Initiative has published Climate-Mitigation Finance: A Practical Guide for Financial Institutions and Small and Medium-sized Enterprises (06-2026). This comprehensive guide introduces an operational bridge to translate international climate standards into bankable projects. 1. Introducing the Climate-Mitigation Finance Framework (CMFF) To eliminate information asymmetry between lenders and borrowers, the publication introduces the Climate-Mitigation Finance Framework (CMFF). Grounded in globally recognized standards—including ISO 14064-1/3, ISO 14068-1, and ISSA 5000—the CMFF breaks down decarbonization into six practical, sequential steps. Figure 1: The 6 integrated components of the Climate-Mitigation Finance Framework (CMFF) for GHG Management. The 6 Components of the CMFF: 2. Segmenting SME Readiness: The 4 Climate Maturity Levels (CML) Financial institutions often fail when applying a one-size-fits-all approach to SME credit appraisal. The CMFF introduces a Climate Maturity Level (CML) system that enables lenders to segment portfolios and pair applicants with tailored financial instruments: Figure 2: The Climate Maturity Assessment Framework mapping SME capacity levels to financial instruments. Maturity Level SME Capacity & Operational Status Accessible Financial Instruments ML0: No Climate Action No active mitigation policies, baseline measurements, or data capacity. Preparatory Technical Assistance: Diagnostic support and capacity-building grants. ML1: Measurement & Reporting Documented GHG inventory across Scopes 1, 2, and 3 baseline. Operational Credit: Energy efficiency loans, standard green credit lines, and tax incentives. ML2: Direct Operations Verified GHG inventory, active action plans, internal monitoring. Structured Finance: Blended finance, green bonds, and sustainability-linked loans. ML3: Indirect Operations Value-chain leadership, active Scope 3 and supplier engagement. Full CMF Spectrum: Impact investment funds, GCF/GEF multilateral capital, green public procurement. 3. De-risking Capital Deployment Through Recurring Verification For financial institutions, greenwashing risks and unverified emissions data represent major regulatory liabilities under disclosure frameworks like the TCFD. Independent third-party verification serves as the foundation of trust across the CMF investment lifecycle. Verification within the CMFF operates as a recurring cycle aligned with loan disbursement and performance milestones: Figure 3: The 3-phase CMFF recurring verification cycle supporting the loan lifecycle. 4. Sector-Specific Opportunities: From Compliance to Competitive Advantage Beyond carbon accounting, climate-mitigation investments generate immediate operational efficiencies that lower costs and protect market share. As international trade mandates like the EU Carbon Border Adjustment Mechanism (EU CBAM) and Scope 3 disclosures take effect, climate alignment is becoming a baseline condition for global trade access. The guide’s Sectoral Reference Catalogue outlines actionable opportunities across key industries: Take the Next Step: Access the Framework & Lead the Transition Whether you are a financial institution looking to build a high-performing green portfolio, or an SME seeking capital to modernize operations, Green Initiative provides the tools, advisory, and certification needed to succeed. 📩 Schedule a Technical Consultation Frequently Asked Questions Everything you need to know about Climate-Mitigation Finance and the CMFF. What is Climate-Mitigation Finance (CMF)? + Climate-Mitigation Finance (CMF) refers specifically to public and private financial resources allocated to projects and activities that directly reduce, avoid, or sequester greenhouse gas (GHG) emissions. Under the Common Principles for CMF Tracking, an investment qualifies as CMF when it significantly contributes to stabilizing atmospheric GHG concentrations in line with the Paris Agreement. Why do 99% of interested SMEs fail to secure climate finance? + A study by the OECD shows that 73% of financial institutions offer sustainable finance products tailored to SMEs, representing a $789 billion market opportunity. However, while SME interest reached 27%, only 3% submitted formal applications, and a mere 1% successfully secured financing. The primary bottleneck is Measurement, Reporting, and Verification (MRV). Small and medium-sized enterprises frequently lack baseline GHG emissions data across Scopes 1, 2, and 3 and do not possess the internal administrative capacity required to satisfy strict lender due diligence. What is the Climate-Mitigation Finance Framework (CMFF)? + Developed by Green Initiative (known exclusively in Brazil as GI International), the CMFF is a 6-step operational architecture designed to bridge the technical divide between financial institutions and SMEs: Component 1: Assessing Climate Maturity Level (CML) Component 2: Conducting the GHG Inventory Component 3: Independent Third-Party GHG Verification Component 4: Defining Targets and Financing Action Plans Component 5: Operational MRV Systems Component 6: Certifying Results How does the Climate Maturity Level (CML) system work? + The CML framework classifies business readiness from ML0 to ML3 to help financial institutions match applicants with appropriate capital instruments: ML0 (No Climate Action): Accesses technical assistance and diagnostic support. ML1 (Measurement & Reporting): Qualifies for energy efficiency loans and standard green credit lines. ML2 (Direct Operations): Unlocks blended finance, green bonds, and sustainability-linked loans. ML3 (Indirect Operations): Accesses full multilateral climate finance (e.g., GCF, GEF) and green public procurement. Which international standards govern the CMFF? + The CMFF provides auditable credibility by grounding its methodologies in internationally recognized standards: ISO 14064-1:2018: Quantification and reporting of organizational GHG inventories. ISO 14064-3:2019: Independent verification of GHG statements. ISO 14065:2020 & ISO 14066:2023: Competence and accreditation for verification bodies. ISO 14068-1: Net-zero mitigation hierarchy prioritizing direct reductions. ISSA 5000 / ISAE 3410: Global sustainability assurance standards. What carbon footprint tool is recommended for SMEs? + SMEs can utilize GREENIA, a specialized software solution developed by

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Green Initiative shortlisted for the World Sustainability Awards 2026, honoring Erika Rumiche in the Rising Star category.

Green Initiative’s Erika Rumiche Named Finalist for ‘Rising Star’ at the World Sustainability Awards 2026

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Global recognition highlights Green Initiative’s continued leadership and dedication to driving science-based climate action and nature-positive outcomes. LONDON / WORLDWIDE — July 2, 2026 — Green Initiative is proud to announce that Erika Rumiche, Carbon Management Coordinator, has been officially shortlisted for the prestigious Rising Star Award at the World Sustainability Awards 2026. Hosted by Sustainability Leaders (a World 50 Group Community), the World Sustainability Awards celebrate the most bold, innovative, and impactful sustainability efforts worldwide. This year’s shortlist was rigorously evaluated by an independent panel of senior sustainability leaders and Chief Sustainability Officers from global powerhouses such as HEINEKEN, Audemars Piguet, Iveco Group, and Perfetti Van Melle. Erika Rumiche’s nomination in the Rising Star category places her among an elite group of trailblazing professionals from leading international organizations, including Bayer, DuPont, dsm-firmenich, HH Global, and Glasgow City Council. Download Official WSA 2026 Press Release As an environmental engineer and key member of the Green Initiative technical team, Erika plays a crucial role in supporting certification cycles, carbon footprint management, and the execution of science-based decarbonization frameworks for public and private organizations globally. “Being shortlisted for the World Sustainability Awards is a powerful validation of our collective mission at Green Initiative,” said Erika Rumiche. “Empowering organizations to step beyond sustainability into active climate and nature restoration requires rigor, passion, and vision. I am deeply honored to stand alongside such incredible global change-makers.” Looking Ahead to Amsterdam The winners of the World Sustainability Awards 2026 will be revealed live on October 22, 2026, at The Garden of Amsterdam. The ceremony will follow the World Sustainability Congress 2026, an exclusive gathering bringing together over 300 global sustainability leaders, innovators, and decision-makers. This international recognition reaffirms Green Initiative’s commitment to setting global standards in carbon management, nature-positive solutions, and empowering the next generation of climate leaders. About Green Initiative Green Initiative is an international climate action and advisory organization dedicated to helping businesses, destinations, and institutions transform climate challenges into opportunities for growth, innovation, and long-term resilience. Through science-backed metrics, carbon certifications, and nature-positive solutions, Green Initiative guides clients worldwide toward a climate-positive future. (Note: In Brazil, operating officially as GI International). For more information on our climate solutions and services, visit greeninitiative.eco. Frequently Asked Questions What is the World Sustainability Awards 2026? + Hosted by Sustainability Leaders (a World 50 Group Community), the World Sustainability Awards 2026 is a premier global recognition program celebrating bold, innovative, and impactful corporate sustainability initiatives. The awards are independently evaluated by Chief Sustainability Officers from leading global organizations including HEINEKEN, Audemars Piguet, Iveco Group, and Perfetti Van Melle. Why is the World Sustainability Awards 2026 important? + The World Sustainability Awards 2026 represents the gold standard in global climate and ESG achievements. In an era where measurable impact is paramount, this platform provides independent validation of organizations and leaders who are embedding sustainability deep into core strategies, driving science-based decarbonization, and delivering nature-positive restoration worldwide. Who was shortlisted for the Rising Star Award at the World Sustainability Awards 2026? + Erika Rumiche, Carbon Management Coordinator at Green Initiative (operating exclusively in Brazil as GI International), was officially shortlisted for the Rising Star Award. She stands alongside fellow nominees from Bayer, DuPont, dsm-firmenich, HH Global, and Glasgow City Council. What climate solutions does Green Initiative (GI International) offer? + Green Initiative (GI International in Brazil) is an international climate advisory and certification organization. We empower businesses, destinations, and institutions to navigate net-zero transitions through science-based carbon footprint management, decarbonization plans, ecosystem restoration, and globally recognized climate certifications. When and where will the award winners be announced? + Winners will be revealed live on October 22, 2026, at The Garden of Amsterdam. The ceremony follows the World Sustainability Congress 2026, an exclusive gathering bringing together over 300 global sustainability leaders, innovators, and decision-makers.

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A corporate executive and a financial advisor in a modern boardroom reviewing a milestone roadmap for a sustainability-linked loan, with a city skyline and solar panels visible through the window.

Interim Targets vs. Long-Term Goals: Structuring Milestone-Based Financing

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The effectiveness of climate finance depends on the timing and structure of accountability mechanisms. While a net-zero commitment for 2050 provides a necessary long-term vision, it often lacks the immediate urgency required to drive operational change. To bridge this gap, financial institutions use milestone-based financing to link capital access to specific, measurable interim targets. This approach ensures that borrowers remain on a credible path toward their ultimate decarbonization goals. Structuring finance around milestones transforms climate action from a distant promise into a series of performance-linked requirements. Lenders who prioritize interim targets effectively mitigate transition risks and ensure that their portfolios align with the Science-Based Target Setting Methodologies: A Finance Institution’s Framework for Evaluating Climate Ambition. By rewarding consistent progress, financial institutions foster a culture of transparency and accountability among their borrowers. Defining the Difference: Strategic Purpose and Timing Effective transition planning requires two distinct types of goals that work in tandem. Understanding the different functions of interim and long-term targets is the first step in designing high-quality finance products. Long-Term Goals: The Strategic North Star Long-term goals typically look 15 to 30 years into the future. They define the final destination for the organization, such as achieving absolute net-zero emissions. These targets are essential for strategic alignment, signaling to investors and regulators that the business is preparing for a low-carbon economy. Interim Targets: The Operational Engine Interim targets cover shorter periods, usually between two and five years. These milestones focus on the immediate implementation of the mitigation actions and advance on the long term targets. They break down the ambitious 4.2% annual reduction requirement into manageable stages, providing the “checkpoints” necessary for financial monitoring. Feature Long-Term Goals Interim Targets (Milestones) Time Horizon 15–30 Years 2–5 Years Primary Focus Systemic Transformation Operational Efficiency Finance Role Portfolio Alignment KPI Trigger for Interest Rates Reporting Frequency Decadal Review Annual or Biennial Verification How to Structure Milestone-Based Financing Milestone-based financing, often delivered through sustainability-linked loans (SLLs), uses specific Key Performance Indicators (KPIs) to adjust the terms of the debt. Lenders should follow a structured five-step process to implement these instruments effectively. Step 1: Set the Long-Term Alignment Anchor Before defining milestones, the borrower must prove that their long-term goal is scientifically grounded. Financial institutions should verify that the end-state aligns with the Absolute Contraction. This ensures that the milestones are leading toward a meaningful destination rather than a superficial reduction. Step 2: Define Science-Based Interim Milestones Lenders should require borrowers to set milestones every two to three years. These targets must reflect a linear or accelerated reduction pathway. If a borrower intends to reach a 42% reduction by 2030, a three-year milestone should represent a minimum 12.6% reduction from the base year. Step 3: Select Robust Key Performance Indicators (KPIs) The success of milestone-based financing relies on the selection of material and measurable KPIs. Effective indicators for climate finance include: Step 4: Establish the Financial Incentive Mechanism The financing agreement must specify how achieving or missing a milestone affects the cost of capital. Step 5: Implement Independent Verification Transparency is the foundation of performance-linked debt. Lenders should require third-party verification of the borrower’s progress at each milestone. This ensures that the data is accurate and free from greenwashing, providing the bank with reliable impact data for its own ESG reporting. Benefits of the Milestone Approach for Borrowers and Lenders Milestone-based financing creates a “win-win” scenario that balances environmental impact with financial stability. For the Financial Institution For the Borrower Integrating Milestones into the Climate-Mitigation Action Plan (CMAP) A successful milestone-based loan requires a clear implementation roadmap. The borrower’s CMAP should explicitly link technical interventions to the financing timeline. For example, the installation of a new solar array in year two should directly contribute to the emissions reduction required for the year-three financial milestone. Conclusion Interim targets are the practical tools that turn long-term climate ambition into a reality. By structuring financing around measurable milestones, financial institutions provide the necessary incentives for businesses to stay on the science-based path. This disciplined approach to climate finance ensures that capital is deployed where it delivers the most significant and immediate impact. Exclusive Climate Mitigation Finance Guide Master the technical architecture of continuous MRV, dynamic pricing structures, and decentralized networks reshaping performance-based lending markets. Download the Complete Guide Complimentary PDF access courtesy of Green Initiative & Forest Friends Frequently Asked Questions: Climate Finance & Interim Targets What is milestone-based financing in climate finance? Milestone-based financing is an innovative lending approach—frequently executed via sustainability-linked loans (SLLs)—that ties debt pricing and capital terms directly to key performance indicators (KPIs). Unlike static loans, this structure uses short-term checkpoints to turn long-term green promises into legally binding, performance-linked operational requirements. How do interim targets differ from long-term climate goals? The two targets serve completely distinct corporate timelines: Long-Term Goals: Act as the 15-to-30-year “Strategic North Star,” defining final absolute net-zero alignment and driving portfolio positioning. Interim Targets: Operate as the 2-to-5-year immediate operational engine, breaking down steep annual reduction criteria into measurable verification steps. What are the key performance indicators (KPIs) used to structure these loans? To secure robust credit risk mitigation and precise impact data, modern green financing prioritizes three material metrics: Absolute GHG Emissions: Total reductions across Scope 1 and Scope 2 footprints measured in metric tons of CO2. Carbon Intensity: Normalizing emissions relative to corporate revenue or total production units—essential for growing small-and-medium enterprises (SMEs). Renewable Energy Percentage: The exact proportion of power sourced from verified green installations. How do interest rate step-downs and step-ups work in sustainability-linked debt? The core financial incentive relies on a dynamic cost of capital. When a borrower successfully reaches a pre-defined milestone, they are rewarded with an interest rate step-down, cutting down their overall interest expense. Conversely, missing a milestone triggers an interest rate step-up penalty. Progressive lenders often integrate reinvestment clauses to route penalty capital directly back into the borrower’s carbon-mitigation pool. Why is independent verification critical for milestone-based financing? Independent third-party verification forms the baseline defense against greenwashing risks. Requiring

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A field of yellow blooming wildflowers at sunset with two wind turbines in the background, symbolizing sustainable agriculture and renewable energy infrastructure under the Green Initiative framework.

Unlocking Climate Finance: A Practical Framework for Financial Institutions

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In a decisive effort to bridge the massive funding gaps threatening small and medium-sized enterprises (SMEs) across emerging markets, Green Initiative has officially launched its highly anticipated Climate Mitigation Finance Guide. Green Initiative has officially launched its landmark Climate Mitigation Finance Guide, a comprehensive, actionable framework designed to close the persistent climate funding gap facing small and medium-sized enterprises (SMEs) in emerging markets. The launch took place during a high-level international webinar, Climate Mitigation Finance & Working Paper Launch, convening senior representatives from the International Finance Corporation (IFC), the United Nations, and the Caribbean Regional Fisheries Mechanism (CRFM) to redefine the architecture of sustainable investment for developing economies. Why Climate Finance for Emerging Market SMEs Is Urgent While multinational corporations dominate global climate investment flows, SMEs form the backbone of emerging economies — yet they face severe, systemic barriers to accessing international climate capital. The newly released guide directly addresses this disparity. Opening the session, Fred Perron-Welch, Head of Climate Policy at Green Initiative, explained why the stakes have never been higher: “Global supply chains are being radically repriced based on carbon costs, driven by upcoming carbon border adjustments in the EU and UK. The critical challenge for financial institutions is moving from mere alignment commitments to actual, on-the-ground portfolio decarbonization and capital deployment.” The Climate Mitigation Finance Guide equips financial institutions with a robust, peer-reviewed framework to identify and de-risk mitigation investment opportunities across 11 key subsectors, helping institutions meet evolving regulatory expectations — including the EU Carbon Border Adjustment Mechanism (CBAM) — while deploying capital at scale. About the Climate Mitigation Finance Guide The guide was developed to support financial institutions, development banks, and impact investors in structuring bankable climate projects in emerging markets. It covers: To ensure technical precision and institutional credibility, the guide underwent rigorous peer review by experts from: UNCTAD (David José Vivas Eugui, Claudia Contreras) · UN Environment Programme (Helena Rey De Assis) · International Trade Centre (Joseph Wozniak) · Inter-American Development Bank (Tenisha Elizabeth Brown) · CAF (Nelson Larrea) · NAFIN (Jocelyn Alexia Flores González, Juan Carlos Freyre Pinto) · CRFM (Peter A. Murray, Sandra Grant, Sherron Barker, Sanya Compton) · Columbia University · SNV · Sevea Consulting · Profonanpe · Proyecta Peru · Smithsonian Institution (Francisco Dallmeier) Key Insights from the Webinar The launch panel moved beyond traditional presentations to foster an interactive, cross-sector dialogue on restructuring global climate finance. Five themes defined the conversation: 1. The Energy Imperative: “Power Shoring” and Green Industry Jorge Arbache highlighted that energy accounts for 50–60% of projected decarbonization budgets. A critical new dynamic — bringing industrial energy consumption directly to green production sites — opens major investment opportunities in green hydrogen and green steel for Latin America. However, Arbache warned that protectionist policies in the EU, US, and Japan continue to block emerging markets from freely exporting these green products, undermining the global energy transition. 2. Natural Capital: The 30-to-1 Deficit Ivo Mulder (UNEP) presented a stark reality: 50% of the global economy is highly dependent on nature, yet the financial system draws down natural capital at a ratio of 30 to 1. Mulder showcased how catalytic facilities — including the Restoration Seed Capital Facility and the Agri-Free Fund — use blended finance and partial credit guarantees to mobilize hundreds of millions of dollars for sustainable agriculture and SMEs. 3. Inclusive Environmental Compliance: Smallholders Must Not Be Left Behind Michael Spoor argued that compliance frameworks designed exclusively for large operators inadvertently exclude smallholder farmers and micro-enterprises. His solution: shared infrastructure and traceability systems that make restoring degraded land more economically rational than deforestation cycles — creating investment return profiles that private capital can actually follow. 4. A Seven-Point Blueprint for Blue Economy Finance Marc Williams (CRFM), representing 17 Caribbean and Atlantic member states, outlined the systematic exclusion of fisheries from global climate finance due to perceived data gaps and structural complexity. Williams presented seven decisive actions to transition from fragmented pilot programs to scalable investment — spanning digital catch reporting, blue carbon credit markets, and integrated coastal climate risk tools. 5. Development Banks Must Shift from Passive to Proactive The panel reached a clear consensus on institutional reform. Emilio Lebre La Rovere argued that development banks must abandon passive roles and build proactive capacity in the Global South to structure bankable projects, citing Brazil’s EcoInvest mechanism as a replicable domestic model. Stephania Mageste highlighted the opportunity to link NDC commitments directly to FDI incentives to ensure incoming capital empowers local SMEs rather than bypassing them. Marcos Vaena, Senior Strategist at the IFC, reinforced the need for patient, upstream engagement: “Interventions must be sector-specific. Success requires radical collective action and deep partnerships between those who hold the technical capacity, the capital, and the scientific knowledge.” The IFC’s upstream approach — engaging with opportunities 3 to 5 years before they are investment-ready — exemplifies the long-horizon thinking the guide is designed to enable. Watch the Climate Mitigation Finance Webinar Recap Download the Climate Mitigation Finance Guide Financial institutions, development banks, policymakers, and sustainability practitioners can access the full Climate Mitigation Finance Guide and accompanying working paper at the dedicated GI International platform. Frequently Asked Questions: Climate Mitigation Finance Guide What is the Climate Mitigation Finance Guide launched by Green Initiative? The Climate Mitigation Finance Guide is a comprehensive, actionable framework designed to bridge the structural investment gap between global financial institutions and small to medium-sized enterprises (SMEs) in emerging markets. Officially unveiled during the international working paper launch, it provides institutional lenders with precise methodologies to identify, de-risk, and deploy capital across 11 key low-carbon subsectors. How does GI International support SME green financing in Brazil? Operating exclusively as GI International within Brazil, our institution provides hands-on capacity building and strategic advisory services. GI International helps Brazilian commercial banks, sustainable operators, and development agencies utilize innovative financial devices—such as Brazil’s successful EcoInvest mechanism, exchange rate hedging, and sovereign guarantees—to successfully mobilize local and international capital for climate-resilient SME projects. What are the main barriers preventing SMEs

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Modern financial district skyscraper facade overlapping a clean energy wind turbine network under a bright sky.

The Regulation That Built a Market

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Why trade and industry climate rules are creating the biggest opportunity in finance Nearly every significant analysis of climate regulation over the past five years has organized itself around the same central question: how much will this cost? The financial sector has followed suit. Climate regulation enters boardrooms primarily as a risk management topic — a compliance cost to be absorbed, a liability to be measured and disclosed. That framing is not wrong. But it is profoundly incomplete. And that incompleteness carries a growing price. What the risk-and-cost narrative systematically ignores is the other side of the ledger: the demand side. Climate regulation is not only constraining the existing economy. It is actively constructing the architecture of a new one. At the center of that new architecture sits a financing gap of historic proportions that no government, no development bank, and no multilateral institution can close alone. Only financial institutions, operating at scale and mobilizing commercial capital, have the capacity to fill it. The question is no longer whether this market exists. It does — and it is growing faster than the capacity of institutions to serve it. To understand the opportunity, one must read the regulations not as compliance documents but as demand-creation mechanisms. The European Union’s Carbon Border Adjustment Mechanism — CBAM — is the most consequential trade instrument of the climate era. By applying a carbon price to imports of steel, cement, aluminum, fertilizers and hydrogen, it achieves something no voluntary framework has ever managed: it makes the cost of failing to decarbonize visible, quantifiable and unavoidable for exporters in any country that trades with Europe. The United Kingdom follows the same path, with its own CBAM scheduled to enter into force in 2027. The competitive logic is direct: decarbonize, or lose access to the world’s largest trading bloc. The US Inflation Reduction Act operates through a different mechanism but produces a structurally similar effect. By directing $370 billion toward clean manufacturing incentives — renewables, electric vehicles, green hydrogen and low-carbon industrial processes — it reprices the economics of production across North America and forces global supply chains to recalibrate. China’s National Emissions Trading System — today the world’s largest carbon market by volume, steadily expanding beyond the power sector — embeds carbon costs into the productive economy of the world’s largest exporter. The carbon embedded in exported goods is ceasing to be an externality and becoming a measurable competitive variable. Together, these mechanisms are achieving what decades of voluntary climate commitments could not: creating structural, policy-backed, regulatory demand for capital to finance the decarbonization transition. Not voluntary demand. Not aspirational demand. Regulatory demand — the kind where the alternative to investment is market exclusion. That is a qualitatively different order of financing opportunity from anything the ESG era produced. Not voluntary demand. Not aspirational demand. Regulatory demand — the kind where the alternative to investment is market exclusion. One of the most visible signals of this transformation is the phenomenon economists have termed powershoring: the strategic relocation of energy-intensive industrial production toward regions with abundant, low-cost renewable energy. The logic is objective. If CBAM makes it commercially unviable to export high-carbon steel or cement to Europe, the rational corporate response is not simply to pay the tariff — it is to move production to countries where decarbonization can be achieved at lower cost and higher speed. North and West Africa, Latin America, the Persian Gulf and Southeast Asia are becoming the new industrial frontiers of the low-carbon economy. For financial institutions with the capacity to originate climate transition finance in these emerging geographies, powershoring represents a first-mover market opportunity of significant scale. For those without that capacity, it represents a client base that will build its financial relationships elsewhere. The capital required to execute that transition is substantial — and it is, by its very nature, climate transition finance.Latin America, beyond being a growing destination for transition investment driven by powershoring, is actively constructing its own domestic carbon pricing architecture. Brazil is the most eloquent case of that trajectory. With the enactment of Law 15,042 of 2024, the country established the legal framework for the Brazilian Greenhouse Gas Emissions Trading System — the SBCE — becoming the first major developing country to legislate a comprehensive regulated carbon market. The system provides for an initial monitoring and reporting phase, followed by mandatory compliance phases with sectoral emissions caps, offset mechanisms and articulation with existing voluntary markets. This is a sovereign decision with its own economic logic — and with direct implications for the competitiveness of Brazilian supply chains in international trade. The technical element that makes that system functional is being finalized at the Ministry of Finance: a regulation proposing mandatory emissions reporting for 17 sectors of the Brazilian economy, including energy, steel, cement, pulp and paper, and petrochemicals, among others. That sectoral reporting is the data infrastructure without which no carbon market can operate with integrity — without verified inventories by company and by sector, there is no credible basis for setting caps, allocating emissions allowances or monitoring compliance in an auditable way. The Ministry of Finance regulation and the SBCE are therefore two complementary instruments of the same architecture: one creates the regulatory demand for emissions data; the other converts that data into price signals that orient investment decisions. Brazil is not importing an external model. It is integrating itself, progressively and with structure, into a global carbon pricing architecture that is already reshaping trade and capital flows across every major economy in the world. Brazil is not importing an external model. It is integrating itself, progressively and with structure, into a global architecture that is already reshaping trade and capital flows across every major economy in the world. In 2021, the Glasgow Financial Alliance for Net Zero — GFANZ — was launched with considerable fanfare. More than 550 financial institutions, representing over $130 trillion in assets under management, committed to net-zero portfolios by 2050. The commitment was serious. The ambition was genuine. The

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The Vaivén Miraflores cable car connecting the Miraflores boardwalk to Redondo Beach in Lima, Peru, featuring Doppelmayr technology and Carbon Neutral certification.

How the Vaivén Miraflores, Lima’s First Cable Car, Can Change the City’s Relationship with Its Coast

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Clean mobility, tourism, and investment are behind the project seeking to transform the urban coastline of the Peruvian capital. For decades, Lima maintained a distant relationship with the ocean that defines its geography. The Peruvian capital extends over cliffs up to 80 meters high facing the Pacific, creating a physical, cultural, and urban separation between the city and its beaches. Despite having one of the most extensive urban coastlines in Latin America, accessing the sea in districts like Miraflores, Barranco, San Isidro, or San Miguel remains a logistical challenge for much of the population. For millions of Lima residents, the beach represents an occasional destination reached primarily by car, involving congestion, limited parking, and demanding pedestrian access via steep, high-gradient stairs. That scenario is beginning to change. In the coming weeks, Miraflores will put into operation the “Vaivén Miraflores,” (@vaiventeleferico) the first urban tourist cable car in Metropolitan Lima. This clean-energy electric mobility system will connect the district’s boardwalk with Redondo Beach in just three minutes. The project involves an investment of nearly US$10 million and utilizes technology from the Austrian company Doppelmayr, a global leader in cable transport systems. The relevance of the project goes far beyond mobility between two points separated by 310 meters. The Vaivén represents a new stage in the relationship between Lima and its coastline and strengthens the consolidation of Miraflores as the main urban tourist destination of the Peruvian capital. The district concentrates a significant portion of Lima’s hotel, gastronomic, cultural, and recreational offerings, alongside a permanent dynamic of private investment linked to tourism and services. Improved accessibility to the Costa Verde significantly expands the economic, social, and recreational potential of the coastal edge, breathing life into this underutilized space. Clean Mobility and Climate Commitment The project also introduces a dimension that is increasingly relevant in global urban and tourist development: the decarbonization of mobility. In a city where much of the beach access depends on private cars, the Vaivén Miraflores incorporates a low-emission electric system that will contribute directly to reducing the carbon footprint associated with traveling to the coast. The initiative aligns with Miraflores’ objectives as a member of the international Surf Cities network, a platform that promotes coastal cities linked to sports, sustainability, and the protection of marine ecosystems. The comprehensive emissions management of the project and its Carbon Neutral climate certification are the responsibility of Green Initiative, an organization internationally recognized for its leadership in climate certifications applied to the tourism sector and sustainable destinations. The integration of urban infrastructure, clean mobility, and climate management positions the Vaivén Miraflores among the most innovative urban tourism projects in Latin America. The integration of urban infrastructure, clean mobility, and climate management positions the Vaivén Miraflores among the most innovative urban tourism projects in Latin America. A Catalyst for Urban Transformation International experience shows that this type of infrastructure often becomes an urban catalyst. Cities like Medellín, La Paz, and Mexico City have incorporated cable transport systems that boosted real estate appreciation, territorial integration, urban regeneration, and new economic dynamics around the connected corridors. In coastal cities, where topography has historically limited access to the sea, the impact can be even more transformative. In the case of Miraflores, the Vaivén articulates tourism, quality of life, and sustainable mobility in a single infrastructure. The system will facilitate access for residents, tourists, cyclists, and surfers to the Costa Verde through accessible cabins equipped for bicycles and surfboards. The increase in pedestrian and recreational connectivity can progressively transform the economic dynamics of the coast, expanding opportunities for: The revitalization of the coastal edge also strengthens incentives for new public and private investments in urban spaces, security, landscaping, and tourist equipment. This is especially relevant for Lima, where several coastal districts concentrate hundreds of thousands of inhabitants and a growing urban economy. The Lima coast possesses extraordinary comparative advantages that remained partially disconnected from the city’s daily life for decades. The Vaivén Miraflores may mark the beginning of a broader transformation: a new urban vision where the coastline stops being primarily a vehicular corridor and becomes an integrated space for well-being, tourism, sports, and economic development. Perhaps therein lies the true scope of the project. More than just connecting the boardwalk to the beach, the Vaivén Miraflores has the potential to transform how Lima relates to its coast, finally integrating the ocean into the economic, social, and urban dynamics of a city built facing the Pacific. Related Articles

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Prepare for the September 2026 EU Green Claims Directive. Learn the new requirements for scientific substantiation, verification, and how to avoid greenwashing.

The EU Green Claims Directive: What Companies Need to Know About Environmental Accountability in 2026

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On May 29, 2024, the European Union adopted the Green Claims Directive—the world’s most comprehensive regulation on environmental claims. Starting September 27, 2026, this directive will reshape how companies communicate about their climate and environmental performance. Yet perhaps its most substantial contribution to the global fight against greenwashing lies beyond communication itself. By demanding scientific substantiation and independent verification, the directive creates a powerful catalytic effect on how organizations actually manage climate and environmental aspects within their internal processes and business models. Rigorous measurement, transparent reporting, and credible verification require companies to build genuine institutional capacity—embedding climate and nature-positive practices into operations, governance, and strategic planning. In this way, the directive becomes far more than a communication standard. It becomes a driver of authentic, long-term business transformation toward more responsible and resilient models of growth. Why Now? The Greenwashing Crisis For years, companies have made sweeping environmental claims with little to back them up. “Eco-friendly,” “sustainable,” “carbon neutral”—these terms became marketing tools rather than meaningful commitments. Consumers were misled. Investors couldn’t trust corporate climate disclosures. And organizations genuinely committed to environmental action found themselves competing on unequal terms against those simply telling a better story. The scale of the problem demanded a response. Studies show that over 50 percent of environmental claims lack adequate scientific backing. Companies making unsubstantiated claims gained unfair competitive advantage, while those investing seriously in real climate action struggled to differentiate themselves in crowded markets. The EU Green Claims Directive exists to end this dynamic—rewarding authentic environmental leadership and holding greenwashing accountable. What Changes on September 27, 2026 Starting that date, environmental claims must meet three non-negotiable requirements: These three requirements together signal something important: compliance is a management challenge as much as a communication challenge. Organizations that approach the directive as a reporting exercise will struggle. Those that embed its principles into governance, operations, and business strategy will thrive. Prohibited Claims: What Companies Can No Longer Say The directive explicitly prohibits claims that cannot meet these standards. Understanding these prohibitions is essential for any organization currently making environmental statements: Restrictions on “Carbon Neutral” and “Climate Positive” Addressing Vague and Partial Claims Why This Matters: The Competitive Opportunity The Green Claims Directive is a compliance requirement—but organizations that understand its deeper logic will recognize it as a market opportunity of significant proportions. Companies that move now—establishing rigorous environmental measurement, embedding climate and nature-positive governance into their operations, and securing independent verification before September 2026—gain first-mover advantage in markets increasingly demanding authenticity. Early adopters gain market trust, investor confidence, and regulatory resilience simultaneously. Organizations that build genuine internal capacity for environmental management emerge as the trusted leaders in their sectors. The Global Ripple Effect The EU is establishing the global standard, but it will not remain alone for long. Similar frameworks are already emerging in the United Kingdom, Canada, and other major economies. Organizations that build robust, verified environmental programs now will be positioned for global compliance rather than scrambling market by market as regulations tighten worldwide. What This Means for Your Organization If your organization makes environmental claims, the time to act is now. Start by auditing your current claims honestly: Which are scientifically substantiated? Which have been independently verified? Then build the foundation: * Rigorous baseline measurement across all scopes. The most important investment is organizational. Build the internal governance structures and technical capacities that make climate and nature-positive action a permanent part of how your organization operates. Green Initiative: A Partner for Authentic Transformation At Green Initiative, we support companies and destinations in building the internal institutional capacity to measure, manage, and verify their environmental impact rigorously. We help organizations understand that decarbonization and nature restoration are investments that strengthen long-term resilience and open access to sustainability-driven markets. Through science-based frameworks and independent certification, we walk alongside organizations on this journey. The standard is rising. The opportunity belongs to those who rise with it. This article was prepared by Yves Hemelryck from the Green Initiative Team. Related Reading

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The Forest Friends and SERNANP Collaboration for Machu Picchu

Green Initiative and Peru’s National Protected Areas Authority (SERNANP) Sign Collaboration Agreement to Support Ecosystem Restoration, Biodiversity, and Local Communities Through the One Million Trees for Machu Picchu Initiative

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The Historic Sanctuary of Machu Picchu is universally recognized as an architectural masterpiece and a symbol of the Inca civilization. However, beyond its profound cultural and historical significance, it is also a highly valuable and fragile ecosystem. Nestled at the convergence of the Andes and the Amazon basin, its cloud forests harbor exceptional biodiversity and play a critical role in regional water regulation. Today, this iconic landscape faces mounting environmental pressures, including forest degradation, the escalating impacts of climate change, biodiversity loss, and an increased risk of wildfires. Protecting Machu Picchu requires more than preserving its stone terraces; it requires the active restoration and defense of its surrounding natural habitats. Recognizing this imperative, Forest Friends (a Green Initiative program) and the National Service of Natural Protected Areas by the State (SERNANP) have signed a formal agreement to support the agenda behind the “One Million Trees for Machu Picchu” initiative. This collaboration represents a vital convergence of public sector conservation mandates and private sector technical expertise, designed to ensure the long-term conservation and resilience of one of the world’s most significant heritage sites. Beyond Planting: The “One Million Trees” Initiative The “One Million Trees for Machu Picchu” initiative is a landscape-scale conservation effort aimed at revitalizing the degraded areas within and surrounding the Historic Sanctuary. However, to view this solely as a tree-planting campaign is to misunderstand its scope. The initiative is a comprehensive ecological intervention designed to: Strengthening the Technical Agenda: The Role of Forest Friends A restoration project of this magnitude requires rigorous scientific planning and meticulous execution. Forest Friends, drawing on Green Initiative’s extensive expertise in climate advisory and environmental measurement, is supporting SERNANP in the initiative’s technical agenda. The collaboration focuses on integrating advanced restoration monitoring, strategic planning, and alignment with international best practices. By bringing robust technical methodologies to the forefront, Forest Friends helps the initiative align with the principles of the UN Decade on Ecosystem Restoration and other recognized global standards. This collaboration represents a scaling up of the experience we have built through our work with organizations in the tourism and travel sector, including CEPA Study Abroad, Tulu Travel, Swetours, KUODA Travel, WorldXChange, as well as other key partners such as MAPFRE, Mediterranean Shipping Company, and adidas. A Credible Opportunity for Corporate Contribution The preservation of global heritage sites is a shared responsibility. Through this collaboration, Forest Friends serves as a vital bridge, connecting companies and organizations around the world with high-quality restoration opportunities. For the private sector, supporting the “One Million Trees for Machu Picchu” initiative offers a unique proposition. It allows organizations to participate in a project that is not only emotionally resonant and rich in storytelling value, but also technically rigorous, validated, and measurable. By anchoring corporate contributions to a scientifically monitored framework, Forest Friends ensures that investments translate into tangible, verifiable environmental outcomes, safeguarding the reputations of supporting partners. Partner in the Restoration of a Global Icon and become a Machu Picchu Forest Friends Accelerator – Join the Forest Friends & SERNANP alliance. We offer companies a scientifically rigorous, measurable, and transparent way to support the “One Million Trees for Machu Picchu” initiative. The Imperative of Transparent Claims in a Regulated Landscape The necessity for such rigorous, technically backed restoration frameworks has never been more urgent. In today’s corporate landscape—particularly within European markets and other highly regulated jurisdictions—the scrutiny surrounding corporate sustainability claims is intensifying rapidly. With the introduction of regulations such as the EU Green Claims Directive and evolving global ESG disclosure expectations, the era of broad, unsubstantiated environmental messaging has ended. Companies are now required to back their environmental investments with empirical data, transparent monitoring, and standardized reporting. The Forest Friends and SERNANP collaboration is fundamentally designed to meet these modern compliance demands. It aligns not only with international restoration standards but also with the highest best practices for transparency and impact disclosure. Organizations that support this initiative are equipped to make credible, evidence-based claims linked to verifiable restoration outcomes. Ultimately, this partnership demonstrates that the future of environmental action lies at the intersection of ecological integrity and corporate accountability. By supporting structured, monitored, and internationally aligned restoration in Machu Picchu, forward-thinking organizations can protect a global treasure while confidently navigating the new standard of transparent, responsible sustainability reporting. This article was written by Marc Tristant from the GI International Team. Related Reading

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Five Years of Building Together: Green Initiative’s Contributions to Climate-Smart Tourism

Five Years of Building Together: Green Initiative’s Contributions to Climate-Smart Tourism

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Over the past five years, Green Initiative has evolved from a technical partner into a catalyst for the global movement toward climate-smart tourism. By working alongside United Nations partners and aligning with the Glasgow Declaration on Climate Action in Tourism, we have helped reshape how the industry perceives its role in achieving the goals of the Paris Agreement. Our philosophy is simple: we don’t just provide solutions; we build the architecture for others to lead. A Shared Architecture: Democratizing Climate Knowledge Our approach has always centered on partnership over imposition. We believe that for climate action to be effective, it must be accessible. This commitment led to the development of frameworks and practical guides designed to help destinations and businesses measure, monitor, and reduce their carbon footprints. Catalyzing Local Leadership The true measure of our success is the independence and resilience of our partners. We provide the technical rigor, but the destinations, communities, and businesses remain the true architects of their transformation. Milestones in Climate Excellence Partner Achievement Machu Picchu, Peru Three consecutive Carbon Neutral recertifications. Bonito, Brazil Established as the world’s first Carbon Neutral ecotourism destination. National Frameworks Collaborative policy development with the Brazilian government. Private Sector Leaders Kuoda Travel, Rio da Prata Group, and Estância Mimosa achieving Climate Positive status. “Our comparative advantage lies in the balance of deep technical rigor and humble partnership. We don’t compete by keeping expertise proprietary; we contribute to the knowledge commons.” From Carbon Measurement to Systemic Transformation The next phase of Green Initiative’s work reflects a maturing understanding of climate action. Transformation cannot happen in isolation; it happens when frameworks are embedded into policy and when knowledge spreads across borders. Our evolution toward Circular Economy principles represents this holistic shift. By addressing waste reduction and resource efficiency alongside carbon measurement, we help tourism systems build long-term economic resilience and align with the UN Sustainable Development Goals (SDGs). A Global Model for Stewardship The model we have refined over the last half-decade transcends geography. Whether it is the ancient stones of Angkor Wat in Cambodia, the iconic Cristo Redentor in Brazil, or the desert landscapes of Petra in Jordan, the demand for science-based, transparent climate action is universal. These destinations are not seeking “green” labels for marketing; they are institutions committed to legacy and stewardship. The Path Ahead: Measuring Resilience As we look to the future, Green Initiative remains focused on supporting others to succeed. Our impact is not measured by the number of certificates issued, but by: Five years in, the architecture for a climate-responsible future is being built. The tourism sector is no longer just observing the transition—it is becoming the solution. As we celebrate this five-year milestone, the global community’s recognition serves as both a validation and a catalyst for what lies ahead. From Green Initiative being named the World’s Leading Sustainable Organisation at the 2024 World Sustainable Travel & Hospitality Awards, to our partners at Bonito Carbon Neutral winning the prestigious FIDI 2025 Award and FUNDTUR-MS securing the Embratur Visit Brazil 2026 Award for Regenerative Tourism, the momentum is undeniable. This excellence is echoed in the private sector, with the Rio da Prata Group recently winning Gold at the 2026 WTM Latin America Responsible Tourism Awards, and Green Initiative being honored for Net Zero Progression at the Environmental Finance Sustainable Company Awards 2025. These accolades—alongside Machu Picchu’s continued dominance as the World’s Leading Tourist Attraction and its pioneering carbon-neutral status recognized by Lonely Planet and the UN Tourism Green Projects Challenge—prove that the architecture we have built together is no longer just a vision. It is a multi-award-winning reality that is redefining the future of a nature-positive planet. For more information on our frameworks or to download our Climate Action Guides, visit the Green Initiative resources portal or get in touch. Prepared by Yves Hemelryck from the Green Initiative Team. Related Reading

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