News » Investment incentives promote climate-friendly coffee processing in Costa Rica

20-08-2018

In cooperation with the Central American Bank for Economic Integration (CABEI) and on behalf of the NAMA Facility, GIZ facilitates access to low-interest loans for coffee mills in Costa Rica. US$ 10 million are now available for investments in climate-friendly technologies that reduce greenhouse gas emissions, water and energy consumption during coffee processing. 

The loans are offered at favorable conditions with a duration of up to 10 years and an interest rate of between 2 and 6%, which is very low for agricultural businesses. The credit line is managed by the Central American Bank for Economic Integration (CABEI) and disbursed through local banks. Financed technologies need to reduce greenhouse gas emissions and water consumption by at least 5 percent and/or reduce energy consumption during coffee processing by at least 15 percent. Promoted measures include the installation of solar panels for energy generation, the acquisition of efficient drying ovens, machines for composting the residual organic material and bio-digesters for the low-emission treatment of wastewaters from coffee processing.

The credit line has a capital of US$ 10 million. CABEI provides US$ 8 million from its own funds, and US$ 200,000 for support and advisory measures for the participating local banks. GIZ contributes US$ 1.8 million from the NAMA Support Project “Low Carbon Coffee Costa Rica” (NSP Café), financed by the NAMA Facility. The credit line was developed by GIZ in collaboration with CABEI, the Costa Rican Coffee Institute (ICAFE) and the Ministries for Environment and Agriculture, and officially launched on August 20th, 2018.

The NSP Café also supports the development of a project pipeline for the credit line. In collaboration with 55 coffee mills, the project examined which new technologies will lead to higher production efficiency and mitigation of greenhouse gas emissions and developed concrete projects for future investments.