Catalysing climate-smart investments for WASH
Aqua for All aims to catalyse public and private investments in water and sanitation that contribute to improving climate resilience and reduce emissions. In partnership with local financial institutions (FIs), we develop loan portfolios for water and sanitation small and medium enterprises (SMEs). We contribute with de-risking, technical support and incentives. These partnerships generate climate impacts indirectly, through the loans and processes that they support.
In each partnership, Aqua for All tailors its approach to the needs of the financial institution. We include climate considerations and support in the form of:
- Training and capacity building for financial institutions’ staff on the relationship between climate and water and sanitation
- Support in developing processes to identify the exposure of water and sanitation portfolios to climate risks
- Integration of climate considerations into processes e.g. due diligence templates and monitoring and evaluation.
Examples of climate-smart loan portfolios
Our Partnership with Oikocredit and Sidian Bank
In partnership with Oikocredit, we are developing a climate-smart loan portfolio with Sidian Bank in Kenya. The entire portfolio totaling €7,4 million is dedicated to funding climate-smart infrastructure projects. These projects will focus on risk mitigation, adaptation and resilience, with a strong emphasis on gender lens financing.
We are providing tailored support to Sidian Bank to:
- Analyse current climate smart WASH products, lending practices, and climate finance taxonomies.
- Identify climate hazards in the regions of Kenya where Sidian Bank operates.
- Develop and integrate climate smart WASH products and gender considerations into Sidian Bank’s WASH Operations Manual.
- Create training content for Sidian Bank staff on climate change, climate finance, and climate smart WASH products.
- Conduct capacity building sessions for Sidian Bank staff.
- Assist in pipeline development and track climate smart loans throughout the loan application process.
Read more: Press release