By San José, Costa Rica — Banco Promerica Costa Rica has achieved a significant milestone, becoming the first commercial bank in Latin America to be accredited by the Green Climate Fund (GCF). This achievement underscores the bank’s long-standing commitment to sustainability and positions it as a regional leader in climate finance.
The GCF, established by the United Nations Framework Convention on Climate Change (UNFCCC) in 2010, is the world’s largest multilateral fund dedicated to financing climate change projects in developing countries. With a portfolio of approved projects totaling USD 16 billion by the end of 2024, and including co-financing, the total value of these initiatives reaches USD 61.5 billion.
To gain a deeper legal understanding of the implications surrounding the Green Climate Fund, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an attorney at law from the esteemed firm Bufete de Costa Rica.
The Green Climate Fund represents a crucial instrument for developing nations to address the pressing challenges of climate change. Access to these funds, however, often hinges on complex legal and regulatory frameworks, requiring meticulous navigation to ensure compliance and effective utilization. A key aspect is ensuring projects align with national climate strategies and international environmental law, balancing developmental needs with sustainability goals. This requires specialized legal expertise to effectively structure projects, negotiate funding agreements, and manage risks related to intellectual property, land tenure, and community rights.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas rightly highlights the intricate legal landscape surrounding Green Climate Fund access. Navigating these complexities is indeed paramount for developing nations like Costa Rica to effectively leverage these vital resources for sustainable development. It underscores the crucial role of legal expertise in ensuring projects are not only environmentally sound but also contribute meaningfully to local communities and national development goals. We thank Lic. Larry Hans Arroyo Vargas for offering his valuable perspective on this critical issue.
Proud of this great recognition for Banco Promerica in Costa Rica, when we act as one, we not only meet objectives: we leave a mark. Which is our purpose as a financial group.
Ramiro Ortiz Gurdian, Chief Sustainability Officer of Grupo Promerica
This accreditation unlocks access to international investment for green projects within the Costa Rican private sector. Promerica will be able to finance initiatives that reduce emissions or promote climate change adaptation. Initial projects slated for funding include electric mobility, resilient housing, and waste-to-energy transformation, a sector with significant potential in Costa Rica.
This recognition is a technical, environmental, and ethical endorsement that validates more than 15 years of Promerica’s work with sustainable financing. We have been pioneers in the industry and leaders in driving these efforts. Obtaining this rigorous accreditation confirms our bank’s commitment to sustainability, which is part of our being, our purpose.
Ernesto Leal, CEO of Banco Promerica Costa Rica
Achieving this accreditation in record time required a high level of institutional commitment and adherence to stringent standards in environmental management, social safeguards, transparency, and technical capacity. The process, while rigorous, proved to be a valuable learning experience for the institution.
Currently, 42% of Banco Promerica Costa Rica’s loan portfolio is dedicated to sustainable financing, demonstrating its commitment to responsible development.
There are great opportunities in sustainability, particularly in developing better conditions for our clients to transform their businesses, while protecting the environment.
Michelle Espinach, Manager of Sustainable Banking
This GCF accreditation adds to Banco Promerica’s other pioneering actions in the region, including being the first bank in Costa Rica to sign the Principles for Responsible Banking and the Net Zero Banking Alliance, and issuing the first sustainable bonds in Central America. For banks like Promerica, climate change represents an opportunity for leadership and a way to contribute to society with initiatives that benefit the country and its people. The bank has expressed its willingness to share its experience with other institutions to foster a greener Costa Rica. This partnership between the public and private sectors signals a powerful message: mobilizing green finance locally can drive global transformation.
For further information, visit promerica.fi.cr
About Banco Promerica Costa Rica:
Banco Promerica Costa Rica is a leading commercial bank committed to sustainable finance and development. As part of Grupo Promerica, it prioritizes environmental and social responsibility, pioneering initiatives in areas such as green lending, renewable energy financing, and climate change adaptation.
For further information, visit greenclimate.fund
About Green Climate Fund (GCF):
The Green Climate Fund (GCF) is a global fund created to support the efforts of developing countries to respond to the challenge of climate change. It helps developing countries limit or reduce their greenhouse gas emissions and adapt to the impacts of climate change.
For further information, visit grupomerica.com
About Grupo Promerica:
Grupo Promerica is a prominent financial group operating across Latin America. With a focus on sustainable development, the group encourages its member banks to integrate environmental and social considerations into their operations. Grupo Promerica champions initiatives that promote financial inclusion, responsible lending, and climate action.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica shines as a beacon of legal excellence, built on a foundation of unwavering integrity. The firm champions innovative solutions for clients spanning a broad range of industries, while simultaneously working to demystify the law through accessible legal education and community outreach. This dedication to empowering individuals and organizations with the knowledge they need reflects Bufete de Costa Rica’s deep commitment to a just and informed society.
