In Latin America and the Caribbean, the vulnerability of small- and medium-sized enterprises (SMEs), smallholder farmers, women, and poor households in general is linked to their economic dependence on activities affected most by climate change.  They are also affected by their reliance on conventional and potentially harmful energy sources and limited capacity to invest in climate-smart technologies and practices.  

It is estimated that 95 per cent of the 15 million smallholder farmers in Latin American and Caribbean countries are already experiencing negative impacts from rising temperatures, unpredictable rainfall, extreme weather events, pest and disease incidence, and decreasing income generation and food security.  

Financial institutions can play a vital role in financing climate-smart agriculture (CSA) equipment to increase adaptation and promote mitigation. The Kuali Fund-GCF will invest in local financial service providers (FSPs), including small banks, microfinance institutions (MFIs), cooperatives, non-bank financial institutions, and FinTech companies, as well as innovative companies (ICs) that use technology to offer solutions to climate change mitigation and adaptation. The Kuali Fund-GCF will invest in Brazil, Colombia, El Salvador, Guatemala, Honduras, Mexico and Panama to transform the FSPs in their transition to become greener and more inclusive.