Inclusive Green Finance: The Triple Inclusive Finance (TIF) Program

The TIF Program has a three-pillar framework (financial, social and environmental, known as Triple Bottom Line) and a twofold objective: downscaling financial services -being more inclusive tackling at the bottom of the pyramid- and promoting climate-smart finance.

The TIF Program aims to bring together the necessary instruments, agents, and resources to improve access to financial services for low-income populations while reducing climate risk and vulnerability, especially for small farmers. The program encompasses three areas of intervention: financial deepening, green microfinance, and institutional strengthening to promote more inclusive and resilient financial systems. TIF strives to facilitate and enhance access to financial services tailored to the needs of Micro, Small, and Medium Enterprises (MSMEs) and the population excluded from traditional banking.

The program combines the resources of the European Union through the Latin America and Caribbean Investment Facility (LACIF) - € 6,000,000 in technical assistance- with € 55,000,000 loan of the Spanish Cooperation through FONPRODE.

Technical assistance, funded by the European Union through LACIF, will be directed towards financial service providers and, to a lesser extent, their MSME clients, focusing on the following intervention areas: financial deepening, green microfinance, and institutional strengthening.

Main pillars of technical assistance by LACIF:

• Financial deepening: digital ecosystems, new products, and financial education, among other factors, enable increased access to low-income populations, particularly in rural areas.
• Green microfinance: fosters environmentally friendly activities, mitigates the effects of climate change, and enhances clients' resilience.
• Institutional strengthening: aims to equip entities with the necessary capacities to offer sustainable and inclusive financial services.

This technical assistance will be essential to significantly increase the impact of the financing made available to the implementing partners by enabling targeted support in the three areas of intervention defined: social, financial, and environmental, in line with the Triple Bottom Line approach.