Key Activities and Deliverables: • Capacity-building support: Provide advisory and training services to 15 local FIs on green finance, including climate risk assessment, management, and reporting. • Green product development: Launch at least 8 new green products and services to better serve the needs of FI clients. • Market awareness programs: Develop and implement 3 training programs to foster green finance in the LAC region, targeting professionals in the financial sector. Expected Outcomes: • Increased capacity of participating FIs in green finance, climate risk management, and reporting. • Launch of new green products and services by FIs to meet the needs of clients. • Facilitation of IFC investments in green finance in the LAC region. Implementation Plan: The project will be implemented by the FIG Climate Team with the support of internal and external consultants. The selection of countries and clients will be based on factors such as financial sector sophistication, FI commitment, investment strategy, GHG emissions, climate vulnerability, and membership in sustainable finance initiatives. The project will closely coordinate with other IFC initiatives and leverage resources from the World Bank and other partners. Risk Mitigation: To mitigate risks related to client commitment and capacity, the project team will closely monitor clients and work with client relationship managers to ensure their engagement and implementation. The team will also retain the right to walk away if there is a lack of commitment or capacity. Other risks, such as market demand uncertainty and funding challenges, will be addressed through fundraising efforts and close collaboration with stakeholders. Strategic Relevance: The project aligns with IFC's 3.0 Strategy, the World Bank Group's Climate Action Plan, and the Paris Agreement. It contributes to the development of sustainable and green finance in the LAC region, supporting climate change mitigation and adaptation objectives. The project aims to create an enabling environment for climate investment opportunities and promote the integration of sustainable business models in FIs.