Green Loan Quick Assessment – Green Finance advice for DEG clients in the financial sector

DEG (Deutsche Investitions- und Entwicklungsgesellschaft), a leading European development finance institution, has been financing and structuring private investments in developing and transitioning economies for over 60 years. As a member of the German KfW banking group, DEG funds and structures projects in several economic sectors with the goal of improving sustainability and quality of life.

As part of its goal to increase economic resilience and respond to the challenges of climate change, DEG is deploying a Business Support Services Toolbox to help its financial sector clients -- financial institutions in developing and emerging economies -- become more sustainable. The Green Loan Quick Assessments (GLQA) are part of this Toolbox and are intended to help DEG clients assess their current green finance capacities and their potential for future business development in green financing.

DEG together with partners implements the GLQA for several financial sector clients that are in the early stages of green finance development. Clients are supported in developing their green finance capacities with the aim of reducing climate risks in their portfolios, preparing for regulatory changes, identifying and generating new green finance business opportunities, and eventually contributing to the sustainable development and resilience of their country's economy.

adelphi has been selected to assist DEG in carrying out Green Loan Quick Assessments for 6 to 7 financial institutions around the world, as well as providing general support to DEG in improving the GLQA methodology. As part of the assignment, adelphi works closely with DEG and target financial institutions on the following activities: 1) reviewing and fine-tuning the GLQA methodology and preparing required toolkits and templates; 2) implementing 6 to 7 GLQAs in different financial institutions, including local market and financing portfolio analysis, green finance capacity gap analysis, site visits involving green financial product prototyping workshops and interviews, development of green finance business potential recommendations as well as recommendations on future support services, and 3) developing factsheets and case studies on implemented GLQAs.