Inter-American Development Bank Launches $50 Million Facility to Boost Carbon-Market Access To Lower-Income Communities & Small Business

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Most people would agree that while being eco-friendly is helpful to the environment and everyone in the long run, it sometimes comes at a steep cost, in terms of dollars. Think of how much additional money you need to spend for solar panels, EVs and buying organic products. This is why financial institutions recognize the need to help lower-income communities and micro-enterprises become greener.

The Inter-American Development Bank (IDB) has recently announced a $50 million facility through its Multilateral Investment Fund. Called the MicroCarbon Development² Fund (MCD² F), the fund aims to help improve eco-friendliness and efficiency in low-income households and communities in the Americas, as well as micro-enterprises and small businesses.

Eligible to seek financing from the project are activities that will convert these communities into using more energy-efficient processes and products, such as CFLs, LED lamps, air conditioners, refrigerators, water heaters, in replacement for their less-efficient counterparts.

The fund will provide financing to six to ten projects, with costs ranging from $2 to $8 million. These will be eligible for carbon credits under the UN’s Clean Development Mechanism.

Image credit: flickr