A. M. 
The funds will be targeted at local agribusinesses that hold internationally recognized sustainability certifications or that implement specific actions aimed at reducing their environmental footprint.
The European Union reaffirms its strong commitment to supporting greener and more resilient economic development in El Salvador. El fondo eco business will invest US$20 million in Banco Industrial El Salvador to promote sustainable agricultural practices throughout the country and support agribusinesses that implement environmental improvements in their operations.
The financing will be channeled to companies in the agricultural sector that hold international sustainability certifications or that implement specific actions to reduce their environmental footprint. Eligible activities include the installation of efficient irrigation systems, the adoption of dry cleaning techniques in sugarcane, and the production of shade-grown coffee, contributing to the responsible use of natural resources and soil conservation.
“The European Union’s support for the Eco Business Fund reflects our commitment to sustainable and inclusive economic growth. Through these types of investments, we seek to foster the resilience of the agricultural sector to climate change and promote business models that protect the environment”, said Duccio Bandini, Ambassador of the European Union Delegation to El Salvador.
The Eco Business Fund is an impact investment fund advised by Finance in Motion, initiated by Germany’s KfW Development Bank and Conservation International, with a first-loss guarantee provided by the German Federal Ministry for Economic Cooperation and Development (BMZ), the European Union, and the UK Department for Environment, Food and Rural Affairs (DEFRA).
In addition to the loan, the Eco Business Fund’s Advisory and Capacity Building arm will work with Banco Industrial El Salvador to strengthen its climate change strategy. This support will include a diagnosis of current practices, the design of a future action plan, and the integration of climate risk analysis into its Environmental and Social Management System (ESMS), along with sector-specific guidelines.
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