Development Finance Climate Action & Green Transition Skills & Employment

Due diligence of NAMA Support Project refrigeration financing facility in Colombia

Project Details


Gesellschaft für Internationale Zusammenarbeit (GIZ)


2019 - 2021


Colombia / Latin America & Caribbean


Knowledge Transfer

Green Finance

Banking & SME Finance


Market Surveys & Feasibility Studies

Green Economy Financing

Due Diligence


Carina Dunker

The NAMA Facility is a joint mechanism of the governments of Germany, the United Kingdom, Denmark, and the EU Commission that provides support to developing countries showing leadership in tackling climate change that seek to implement transformational country-led Nationally Appropriate Mitigation Actions (NAMAs).

The NAMA Support Project entitled “Colombian NAMA for the domestic refrigeration sector” was designed to provide financial incentives to promote technological change and greenhouse gas reduction in the domestic refrigeration sector in Colombia. As part of the project, a financing vehicle was envisioned which would channel funds originally from the NAMA Facility through the German development agency GIZ to Bancóldex, a Colombian development bank and the implementing partner of this project. Bancóldex would leverage and on-lend these funds to local financial institutions and ultimately onwards to the beneficiaries of the project: those in Colombia producing or using refrigeration equipment.

The purpose of the funding would be to encourage Colombian manufacturers of refrigerators to move towards more energy efficient technologies and households to use energy efficient refrigerators. In order to establish an appropriate funding mechanism and formalise the role of Bancóldex, GIZ contracted IPC to perform an enhanced due diligence with the objective of GIZ ultimately establishing an appropriate grant agreement with Bancóldex.

IPC’s advisory responsibilities include conducting a detailed due diligence of Bancóldex, conducting on-site interviews with all relevant stakeholders of Bancóldex, proposing requirements and provisions for GIZ grant annexes, advising GIZ on the selection of partner financial institutions and potential pricing and conditions for on-lending, and designing consumer incentives for user uptake of energy efficient refrigerator lending (e.g., manufacturers of refrigerators, waste managers, households).


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