Climate Finance and Green Entrepreneurs at the forefront of combating Climate Change

March 26, 2019

Developing, financing and implementing ‘green solutions’ to mitigate and adapt to the negative effects of climate change are of crucial importance to build resilient and sustainable societies. This is particularly important in the global South, where the adverse effects of climate change hit the hardest and create long-term damage.

With floods, droughts and cyclones terrorizing the planet, the world has seen that climate change has become a global threat and its effects are being experienced by all. Building climate-resilient and low-carbon infrastructure is the only solution. However, particularly in developing countries, this requires support, which includes mobilization of finance and investment at different stages, provision of technical support and facilitation of access to financing for innovation. As the entire world is faced with significant needs for climate action to help solve the global environmental crisis, the international community is faced with the challenge of finding ways to lower per capita environmental footprint while at the same time increasing per capita benefits of sustainable development. It is against this background that the climate finance lab and the green entrepreneurship support program were built.

Climate Finance Lab

Meeting the financing requirements for climate-smart agriculture implementation will be a significant challenge, but one that is central to addressing major issues as poverty, drought, food security issues and energy needs. Building bridges between market-based approaches and climate financing institutions is crucial to allow for rapid investments into emerging mechanisms, so that the policy instruments of the Paris Agreement can evolve in a “learning-by-doing” approach.” Together with SEED, Hivos is piloting this approach by implementing the ‘SEED Practitioner Lab’. During the Climate Finance Lab, practitioners pool their expertise to prototype financial products which drive investment in climate-smart solutions and improve climate resilience, refine these prototypes and mobilize partnerships to successfully launch the climate finance prototypes in target markets. Practitioners are organised throughout the process into smaller product development groups of five to 10 participants who lead prototype design, refinement and implementation. The product development groups offer a close-knit forum for face-to-face and digital knowledge exchange between participating practitioners.

Green Entrepreneurship and Access to Finance

The good news is that every day, new climate-smart initiatives are being developed across the globe to meet the formidable challenges that lie ahead. Entrepreneurial women and men are leading the way in tackling local and global challenges amplified by climate change. Hivos supports these entrepreneurial people in developing and scaling their activities in programs such as Hivos’ Green Entrepreneurship Program. Green Entrepreneurship can offer an opportunity for inclusive, economic growth, particularly in developing countries. With sufficient financing for sustainable and climate-smart systems, we can unlock great positive opportunities and longstanding economic, social and environmental impact.

For more information on Southern Africa Entrepreneurship Support contact Marnix van Holland at: entrepreneurship@hivos.org