USD 1,089 million cumulative investments made to partner institutions since inception
In December 2014, KfW, the German Development Bank, Conservation International and Finance in Motion set up the eco.business Fund. The Fund´s mission is to “promote business and consumption practices that contribute to biodiversity conservation, to the sustainable use of natural resources, and to mitigate climate change and adapt to its impacts, initially in Latin America and the Caribbean and potentially expanding to Africa”.
The eco.business Fund pursues its mission by providing dedicated financing and technical assistance to financial institutions and businesses committed to environmental practices in unique ecological landscapes both in Latin America and sub-Saharan Africa. The fund focuses on sustainability in four economic sectors: agriculture and agri-processing, fishery and aquaculture, forestry, and sustainable tourism.
The fund’s partner institutions report on semi-annual basis on their sub-borrowing activities, which includes information on, for example, sub-loans size, eligibility criteria (labels or “Green List” project), and use of funds (for example, which crops the borrower produces). The fund also offers assistance to the partner institutions to enhance their reporting systems and optimize their data collection methods.
The eco.business Fund's Board of Directors, elected from a list of candidates submitted by the shareholders, exercises oversight of the fund and determines its strategic positioning and overall approach. Approval of investment proposals submitted by the Advisor is delegated to an Investment Committee appointed by the Board.
The fund’s service providers are:
• Fund Advisor: Finance in Motion GmbH
• Technical Assistance Facility Manager: Finance in Motion GmbH
• Depositary Bank: Citibank Europe plc, Luxembourg Branch
The Development Facility is funded mainly through donor grants. The technical assistance is coordinated by Finance in Motion and delivered by independent experts selected in a tender process.
Finance in Motion GmbH, the Fund Advisor and Technical Assistance Facility Manager, has two regional offices in the fund’s target regions, namely in Colombia and El Salvador.
Local financial institutions can use the funds provided by the eco.business Fund for on lending to final borrowers holding a certification attesting to their sustainability and contribution to biodiversity, e.g. ASC, FSC®, MSC, or Rainforest Alliance. In addition, financing can be provided for activities that are included in the fund’s positive list of standard eligible measures (“Green List”) or for other individual measures that contribute to the eco.business Fund’s mission.
Latin America and the Caribbean