The Concept
The Climate Finance Knowledge Hub is designed as a one-stop shop that equips financial institutions (FIs) and climate-smart enterprises with technical know-how, certifications and training to ease the access to finance for climate-smart innovation.
The platform provides supports for climate-smart enterprises to learn about financial instruments and assess such enterprises. It contains an integrated e-Library with reading materials, news, (scientific and grey) articles, as well as research data sections on climate smart enterprising for downloads for visiting clients.
In addition to access to information and market data, FIs can register for climate finance trainings that will provide the required skills and competencies for FIs to design customized financial instruments to address specific needs of climate-smart MSMES. These capacity development trainings will encompass three main areas: (1) appraisal and assessment of climate smart enterprises, (2) risk profiling and indexing of climate smart enterprises and (3) value chain financing for climate smart/resilient enterprises.
The Climate Finance Knowledge Hub targets a wide range of local Ghanaian FIs which are interested in developing climate finance instruments and capacities in this field. These FIs include Universal Banks, Rural and Community Banks, Saving and Loans Companies, Microfinance Companies, Credit Unions, Susu Collectors, Micro-Credit Companies and Financial NGOs with a focus of providing financial services to climate-smart MSMEs. The Hub also targets MSMEs that are already or want to become climate-smart, mostly operating in agriculture, renewable energy and sanitation among others in line with the strategic sectors for Ghana’s National Development Commission implementation: energy; transport; agriculture, forestry and other land use (AFOLU); and waste (Government of Ghana, 2015).
Benefits and Impact
First, it creates a common platform for FIs and SMEs on climate finance. In this way, efforts to strengthen the climate finance sector and climate-smart enterprises can be bundled and it minimizes the risk of a duplication of efforts. Also, through this common platform, the existing niche of FIs operating in the field can strategically be managed and empowered.
Second, the Hub supports the digitalization of the climate-finance sector in an inclusive way. Digital innovation has proven successful in Ghana to overcome infrastructure challenges. For instance in rural areas, the platform could be accessed through mobile phones. Also, the possibility to receive capacity building online, also climate-smart SMEs and microfinance institutions which are based in rural areas will be able to participate.
Why sign-up for the Climate Finance Knowledge Hub (CFKH)?
Every year billions of dollars and other currencies are disbursed towards climate change mitigation and adaptation. However, smaller financial institutions (FIs) and businesses do not have the capacity to play their part in climate-related business opportunities. Generally:
⦁ Climate change affects the performance of our businesses and that of our clients so all must come on board
⦁ FIs can only assess climate-related businesses if they have the knowledge in climate change and its financing modules
⦁ FIs can only develop relevant products if they have in-depth knowledge of the climate change dynamics.
⦁ FIs can only access climate funds if they have the knowledge and skills to attract and manage it.
By joining the Climate Finance Knowledge Hub
Financial Institution (FI)
⦁ Joins the global network of climate financiers
⦁ Has access to a list of climate-smart enterprises and climate-related businesses
⦁ Has endless opportunity to build the capacity of staff and clients
⦁ Will be positioning the institution to attract climate-related funding
⦁ Will be complying with the tenets of sustainable banking
⦁ Will be joining hands with other institutions to save the planet
⦁ Will be able to raise cheaper funds
⦁ Will Increase client base
⦁ Will be able to diversify loan portfolio
⦁ Will be able to develop new climate related products
Micro, Small and Medium Enterprise (MSME)
⦁ Has ease of access to both local and international FIs
⦁ Has endless opportunity to build the capacity of staff and clients
⦁ Will be positioning the institution to attract climate-related funding
⦁ Will be complying with the tenets of sustainable banking
⦁ Will be joining hands with other institutions to save the planet
Technical Service Provider (TSP)
⦁ Will be exposed to more learning opportunities
⦁ Will be exposed to more clients matching opportunities
⦁ Will increase client base
⦁ Will join a global network of climate related service providers
⦁ Will be supporting positive climate action