Standardisation of general environmental and social conditions for the different operational credit modalities of CAF

The consultancy aimed to complete and update the environmental and social clauses in CAF's contractual framework for its various loan modalities for both the private and public sectors. The scope included several key aspects: First, a detailed identification of existing environmental and social clauses in current credit contracts was conducted, focusing on representative operations across different sovereign and non-sovereign loan modalities. Next, gaps were analyzed between the existing clauses and CAF's environmental and social framework through documentation reviews and meetings with key stakeholders. This analysis also considered CAF's commitments to strategic partners, particularly the Green Climate Fund.

Additionally, the consultancy involved identifying best practices from other institutions by reviewing environmental and social clauses in credit contracts used by multilateral banks and financial institutions, including the World Bank, Inter-American Development Bank, International Finance Corporation, and others. Based on the findings, specific recommendations for updating and improving CAF's environmental and social clauses were made for both public and private loan modalities, alongside defining the best legal approach for incorporating Environmental and Social Action Plans. Finally, a series of discussions were held with key CAF stakeholders to present the recommendations and make adjustments based on their feedback.