Founded in 2002, the Central Finance Facility (CFF) currently serves as the credit unions’ credit union, providing essential support and services. In concert with the Venture, Teachers, and Port Employees Credit Unions, the CFF launched on August 25th its Green Loan programme, entitled CU Green. Rolling out to Credit Union members in October, the initiative represents one of the first mainstream efforts locally to provide green financing or funding for home and small business owners to build more sustainably and improve energy efficiency.
Green financing will play a vital role in addressing the current economic and environment challenges facing Trinidad and Tobago by climate change. The approach involves directing funds towards environmentally sustainable projects designed to not only mitigate adverse climate impacts, such as flooding, storms, sea level rise, and heatwaves, but promote our national transition to a low-carbon economy. Aside from sustainability-linked loans, green financing includes other mechanisms or tools such as green bonds, grant funding, and venture capital investment programmes targeting clean technologies. Green financing ultimately seeks to foster key innovations, accelerate the adoption of renewable energy sources, encourage the implementation of energy-efficient technologies, support the reduction of greenhouse gas emissions, and stimulate green growth.
CFF Vice President, Lyndon Byer, noted during the launch event that CU Green aims to provide access to green products and services for Credit Union members and promote the development of our local green market and industry thereby contributing to the nation’s economic growth and development. Mr Byer also highlighted that the CFF is collaborating with and will receive support from various local and international stakeholders, including the Ministry of Planning and Development, Inter-American Development Bank (IDB), Deutsche Sparkassenstiftung für internationale Kooperation (DSIK), and Trinidad and Tobago Green Building Council (TTGBC).
DSIK Finance Consultant, Ilan Wolkov, spoke to the increasing reputational, financial, and environmental risks posed by climate change and the opportunities seized upon by the CFF, developing a first mover advantage for our local Credit Unions and their members in responding to climate change through adaptation and mitigation efforts. He applauded the industry for adopting a longer term vision for the movement and embarking on a green journey, better aligning to climate change and consumer demands, especially in the face of planned increases in energy costs and reduced subsidies.
Planning and Development Minister, Penelope Beckles-Robinson, delivered the feature address and commended the CFF for pioneering this green finance initiative. The Minister recognised that it held the potential to empower homeowners and small businesses to respond to climate change and adaptation through access to funding and education. The Minister also stated that the initiative had the potential to help Trinidad and Tobago not only meet its stated climate commitments, but address many of our climate challenges and encourage greater resilience within the built environment. It was the Minister’s hope that the initiative inspires other entities to also align to international climate goals and objectives and offer similar products and services.
With its mission to transform the way our country’s buildings and communities are designed, built, and operated, the TTGBC was identified as and invited to be an key partner on the CFF initiative, assisting with public education and awareness, training and development for staff members and other stakeholders, and connecting credit union members with certified professionals and suppliers within the local green building industry. Sustainability should be of paramount concern for everyone, including homeowners, commercial developers, and governments. Access to green financing solutions are set to accelerate the adoption of sustainable technologies and construction practices into our local economy. We look forward to the implementation of the CFF programme later this year and fulfilling our mission and commitment to sustainable design and construction.
