Sep 07, 2023

State of the Art of Green Inclusive Finance 2011-2019
From the e-MFP Green Inclusive and Climate Smart Finance Action Group

e-MFP is excited to present the analysis of Green Inclusive Finance trends over the past decade in our publication "State of the Art of Green Inclusive Finance 2011-2019." This report - which is the result of  a great collaborative effort of the e-MFP Green Inclusive and Climate Smart Finance Action Group (GICSF-AG), offers a comprehensive overview of the current landscape of green inclusive finance. Leveraging the framework of the Green Index, and built on data from over 1,130 environmental assessments conducted across 866 diverse Financial Service Providers (FSPs), this publication establishes a benchmark for ongoing data collection and sector analysis.

Key findings from our study include: 1) The robustness of the Green Index as a data aggregation tool; 2) The consistent expansion of green financial product offerings across all regions and legal structures assessed from 2011 to 2019; and 3) A notable increase in loans for nature-based solutions (NbS), such as sustainable agriculture, livestock, fisheries, and forestry, alongside the steady growth of loans for renewable energy and energy-efficient products.

These findings collectively indicate a positive shift in FSPs' commitment to financing environmentally responsible practices and technologies, transitioning from a 'do-no-harm' to a 'do-good' approach. Nonetheless, the quantity and scale of green loans disbursed annually by FSPs remain modest, calling for a more holistic approach that balances strategy, risk management, and opportunities.

This confirms the need for intensified collaboration among stakeholders in the green inclusive finance sector to strengthen FSPs' capabilities, ultimately fostering the sustainable resilience of smallholders, vulnerable households, and micro and small enterprises.
We believe this publication will inspire collective action focused on green inclusive finance.

For further insights into the work of the AG, please reach out to jafonso@e-mfp.eu and check out our AG page.

Read "State of the Art of Green Inclusive Finance 2011-2019"

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