Productive Investment Initiative for Adaptation to Climate Change (CAMBio II)

Reducing obstacles for Micro-, Small- and Medium-sized Enterprises (MSMEs) to access credit and supporting the best available adaptation measures in seven Central American countries. While agriculture, livestock and forestry are key sectors in Central American economies, they are highly sensitive to climate change. Conservative banking practices and high perceived risks associated with operations in rural areas rural mean MSMEs have limited access to credit in financing adaptation measures.  This initiative will provide concessional loans and technical assistance to encourage MSMEs to invest in adaptation. It is also designed to consolidate agricultural production systems adapted to climate change. A grant component of this programme will provide financial rewards to MSMEs and intermediary financial institutions for their successful implementation of adaptation activities. The programme has an estimated lifespan of 15 years.