The National Corporation for People’s and Solidarity Financing (CONAFIPS) has another big challenge, which is to strengthen green finance. For this purpose, 680 million dollars of sustainable and socially responsible loans were delivered, through a model called SARAS (Environmental and Social Risk Management System).

“This is very relevant, we work, for example, with the Inter-American Development Bank (IDB), with a line of credit for biobusiness, which already totals 22 million dollars to strengthen this type of business in the Ecuadorian Amazon,” said Roberto Romero, president of the board of directors of CONAFIPS.

Green credits are aimed at protecting two things: first, the environment, the ecosystem; that the production activities financed by the corporation do not generate negative impacts on all the ecosystems that Ecuador has to worry about. And the second issue is that they are socially responsible, that is, that people take care of the environment and work.

“For example, in activities in the agricultural sector, these models implemented by CONAFIPS allow them to give recommendations to producers so that they can improve their activities, but also take care of their workers,” said Romero.

The SARAS model, designed by CONAFIPS, provides the person receiving the loan with technical recommendations to improve their activities, and also of a social nature, on labor issues and, for example, on environmental risk issues. From this aspect, there are also SARAS 2.0 solutions, which are free for cooperatives, where they are trained to use them in a technical and professional manner.

Producers receive recommendations, along with 16 maps that include ecological and natural risks on the mainland and in the Galapagos. They also identify if these ecological activities can suffer some kind of climate attack, such as the El Niño phenomenon, if they can suffer any problems with floods or frost, so that they can prepare to face these risks in an appropriate way.

These maps allow you to determine if a green loan investment is located in a sensitive geographic area, such as protected or archaeological areas. “Then we give the manufacturer feedback and a roadmap so that he can develop his activity while respecting such relevant issues as social and environmental issues,” said the president of the Management Board.

Another issue that CONAFIPS is working on is electromobility, the resources of which – provided by the Inter-American Development Bank (IDB) – are the strengthening of credit and the possibility of transforming demand from vehicles that pollute the environment on fossil fuels to electric vehicles.

“These types of loans are aimed at production activities. I give an example: if there is a taxi cooperative, these credits will be able to strengthen the demand for new electric cars,” Romero emphasized.

This transformation will prevent atmospheric pollution and reduce the greenhouse effect affecting the planet. “Also, with electromobility, we can support the switch from fossil fuel-powered motorcycles to electricity,” the official added.

CONAFIPS was created and opened its doors in 2012, with defined goals that will be maintained over time and thanks to the support of international funding sources. “The goal is to continue to maintain this support for the development of the popular and solidarity economy, for financial inclusion and to be able to strengthen green, socially responsible loans and for the institution to be sustainable,” concluded Romero.