CABEI, the European Union, and KfW join forces to launch the Regional Sustainable Mobility Contest
"Article originally published on CABEI's website on 19/03/2024. LACIF contributes to the Mipymes Verdes Initiative through an investment grant and technical assistance."
In order to promote environmentally sustainable growth in the region, the Central American Bank for Economic Integration (CABEI), the Government of Germany, through the KfW, and the European Union (EU), through the Green MSMEs II Initiative, launched the Regional Contest for Sustainable Mobility, aimed at micro, small and medium-sized enterprises (MSMEs) in Central America with investments that contribute to the reduction of greenhouse gases.
Sustainable mobility implies guaranteeing the free mobility of society, facilitating access to transportation, and connecting different populations without compromising ecological or human values, both in the present and in the future. According to the United Nations Development Program, the transportation sector accounts for almost 39% of total greenhouse gas emissions in Latin America and the Caribbean and is a significant source of pollution and health problems, especially in regions where 80% of the population lives in urban areas.
The contest will award three MSMEs per beneficiary country, for a total of 18 enterprises, with non-reimbursable resources for projects that present innovative features in their business plans, all with a focus on sustainable mobility. These projects may cover areas such as diagnostics, recycling and reuse of batteries, manufacture of sustainable vehicles and chargers, development of applications related to charging and fleet management, vehicle maintenance workshops, vehicle rental, training centers, among others.
MSMEs interested in participating must be registered in Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, or Panama, have up to 200 employees and have made investments in sustainable mobility during the 12 months prior to the launch of the contest or be committed to making them in the following 6 months. The deadline for submitting proposals is May 19. For more information, the complete contest rules can be found in the following link:https://www.bcie.org/concurso-mipyme
Green MSMEs II Initiative
The Green MSMEs II Initiative is a tripartite effort of the Central American Bank for Economic Integration (CABEI), the German Government, through the KfW, and the European Union, which seeks to protect our climate and environment by creating and offering adequate, efficient, and sustainable financial products for the sector, with investments in renewable energy, energy efficiency, and cleaner production.
At the regional level, the Green MSME II Initiative has granted more than US$40 million in loans and more than US$7 million in guarantees, protecting more than 10,000 jobs in more than 600 companies.
The Green MSMEs II Initiative is one of two major initiatives that the European Union, the KfW and CABEI are implementing in Central America to improve access to financing and the capabilities of MSMEs in the region. The DINAMICA II Initiative is another effort that focuses on new, young, and innovative enterprises. Both initiatives are aligned with the European Union's Global Gateway strategy, which seeks to promote socially just green and digital transitions throughout Latin America. It is a comprehensive and inclusive strategy that fosters EU-LAC investments and cooperation, both from the public and private sectors.
