New toolkits support inclusive green finance

Two toolkits to make climate finance more accessible for women entrepreneurs and entrepreneurs with disabilities have been developed by Saraswati and the CBM Global Inclusion Advisory Group.

The complementary toolkits – which were designed for use by financial institutions and entrepreneurs – were developed using a grant provided by KINETIK.

Several organisations have expressed interest in adopting or piloting the tools, including Bank Indonesia, UN Women, Humanis Foundation, Yayasan Plan International Indonesia, People Courage International, and PLUS.

Lingkar Temu Kabupaten Lestari, an association of district governments in Indonesia that promotes sustainable and inclusive regional development, Bank Syariah Indonesia, Indonesia Impact Alliance, and Komida (Koperasi Simpan Pinjam Mitra Dhuafa) have also expressed interest in the tools.

The toolkits include guidance on climate finance criteria linked to the Financial Services Authority (OJK)’s sustainable finance task force framework (TKBI).

They are designed not only to determine whether a business is eligible for funding but also what further support entrepreneurs need.

“Women entrepreneurs and entrepreneurs with disabilities face risks and barriers that are different from other entrepreneurs, especially as climate change continues to affect communities and livelihoods”, said Dina Mairawati, who is known as Rara, the Program Lead at Saraswati.

“They are often positioned only as beneficiaries, not as active economic actors.”

Rara said this represented a major missed opportunity.

“Inclusive climate finance is not only about reducing inequality,” she said.

“It is also about building a stronger and more resilient economy through inclusive growth and support for the green transition.”

Saraswati and CBM Global Advisory Group began by bringing women entrepreneurs, entrepreneurs with disabilities, financial institutions and other key players together.

Their discussions explored why women entrepreneurs and entrepreneurs with disabilities often struggle to access green finance and how financial institutions identify and support recipients of climate-related funding.

They revealed that many entrepreneurs already had sustainable business practices but were unaware they might be eligible for green finance.

Meanwhile, some financial systems excluded people whose businesses operated differently from conventional models.

“There is still strong stigma and discrimination, especially towards entrepreneurs with disabilities,” Rara said.

Dewi Winarti Roro Shanti, the founder of organic skincare company Dewijaya Care, who is visually impaired, said she didn’t want to be seen as a person with disabilities who needed help.

“I want to be seen as a business owner who has solutions for climate challenges and for our communities,” Dewi said.

“We have been practicing sustainability every day, but the doors to financing are still closed because we are not considered to fit existing standards. What we need is a process that understands us, not just assesses us.”

Meanwhile, some financial institutions said funding opportunities for climate initiatives already existed, but they struggled to identify who should receive them.

Entrepreneurs and financial institutions worked together with Saraswati and the CBM Global Inclusion Advisory Group to develop the toolkits.

Rara said one of the biggest lessons learned was the importance of building empathy and creating a safe space for both sides.

“That space helped reduce bias and narrow the gap between financial institutions and entrepreneurs.”