+1-868-638-6062

Strengthening financing for Caribbean Local Green-blue Enterprises

Description of project

CANARI is continuing its work to promote and support the process of transformation to environmentally sustainable, inclusive and resilient economic development in the Caribbean.  Micro, small and medium enterprises (MSMEs) were identified as a key pathway in this transformation but require enhanced support.  This project built on earlier collaborative work with the Green Economy Coalition (GEC), of which it is a member, and looked specifically at how to enhance financing and other support to Local Green-Blue Enterprises (LGEs).  LGEs are informal or formal MSMEs which have a potential positive effect on the global or local environment, community, society, or economy, and are striving to meet triple bottom line returns (economic, environmental and social).  This global project was led by GEC and funded by the European Union (DCI/ENV/2020/417-985). CANARI coordinated implementation in Trinidad and Tobago (T&T).

Within the broader project, CANARI’s work focused on how nature-based micro-enterprises can be more effectively supported, given that these are key in the Caribbean economy, particularly for the rural poor and marginalised, but are highly vulnerable to climate change and other threats.  The project supported dialogues convening LGEs and support agencies and partners (from the civil society, public and private sectors) and their networks at local, sector and national levels and connected their perspectives into policy dialogues with governments to address key constraints to investments and promote good governance.  See here for the project summary.

Highlights:

  • A Contextual Financial Analysis (CFA) was done to better understand the context, needs and opportunities for enhancing support to LGEs in T&T and a technical report and policy brief were produced.
  • A GIS StoryMap was produced on “Caribbean Local Green-blue Enterprises: A pathway to inclusive, sustainable and resilient economic development”.
  • The Action Learning Group on Financing Local Green-Blue Enterprises (LGEs Finance ALG) developed a concept for a tailored financial product for LGEs called ‘Root Capital’ which can be piloted in T&T or elsewhere in the Caribbean.
  • A Caribbean Local Green-Blue Enterprises Knowledge Platform was developed to raise awareness of the LGE sector and promote and facilitate enhanced support.

Key activities and results:

1.       Conduct Contextual Financial Analysis (CFA)

Desk reviews, interviews and focus groups with key stakeholders were held to understand the financial landscape and laws, policies, regulations, practices and key stakeholders and initiatives for finance and support to LGEs in Trinidad and Tobago. The technical report which was produced provided the foundation for stakeholders to identify signature issues facing LGEs in Trinidad and Tobago. Key recommendations are reflected in a policy brief. This contributed to development of a global report by Finance Watch and the Green Economy Coalition Financing Local Green Enterprises: Closing the funding gap for sustainable MSMEs in developing countries and another report by the Green Economy Coalition Small is Powerful: Local green enterprises – how to finance a powerful catalyst for change.

2.       Convene dialogues

The Action Learning Group on Financing Local Green-Blue Enterprises (LGEs Finance ALG) (see TOR) was established to explore current initiatives, needs, constraints and opportunities for enhancing financing and other support to LGEs as a pathway to a green-blue economy in Trinidad and Tobago. Members were from LGEs, business support organisations, finance providers, policymakers and regulators across government, inter-governmental, private, academic and civil society sectors.

The ALG inputted into the CFA and identified the signature issues. An action learning agenda was then developed for the ALG to start to undertake action learning on these signature issues, and two areas of work were delivered: (1) development of a finance product tailored for LGEs called ‘Root Capital’, which can be piloted by LGEs and financial institutes; and (2) development of the Caribbean Local Green-Blue Enterprises Knowledge Platform to raise awareness of the LGE sector and promote and facilitate enhanced support.

3.       Make evidence-based policy recommendations

CANARI submitted a position paper as input to the Government of Trinidad and Tobago’s roadmap to recovery from COVID-19. This recommended four strategies, with associated actions:

a. Put resilience, inclusiveness and sustainability at the centre of the new economic development model

b. Facilitate interactive governance where partnerships, transparency, accountability and participation enable a whole of society, integrated and coherent approach

c. Enable local economic development through catalysing and supporting innovation and entrepreneurship

d. Value, protect, sustainably use and restore ecosystems as the natural capital which is the foundation for economic development and human well-being and health

4.       Develop the global GEC network

CANARI will collaborate with other GEC members to explore strengthening and expansion of the network.

Publications

Written case studies

Recent news and blogs:

Related publications:

For more information please contact Nicole Leotaud at nicole@canari.org

See related work under CANARI’s Green Economy and Rural Livelihoods programmes.

Photo: Grande Riviere Chocolate Company (GRCC) booth at an event in Trinidad and Tobago. Credit: GRCC

CANARI