CRAF Overview
Empowering Sustainable Energy Across CARICOM
The Credit Risk Abatement Facility (CRAF) is an innovative initiative of the CARICOM Development Fund (CDF) that accelerates investment in Renewable Energy (RE) and Energy Efficiency (EE) across CARICOM Member States. CRAF bridges the financing gap for clean energy projects by reducing perceived lending risks and increasing technical capacity among local institutions and enterprises.
What is CRAF?
CRAF is a financial and technical support
mechanism designed to:
Promote Climate Resilience
Built to support energy independence, and low-carbon growth.
Build Technical Capacity
An energy ecosystem supported through targeted assistance and support.
Support To SMEs
Provides a full suite of Technical Assistance to develop bankable projects.
Unlock Financing
Accelerate implementation of RE and EE investments.
Why CRAF Matters
CRAF supports the region’s shift toward
sustainable energy by:
- Increasing access to
affordable green finance - Reducing regional GHG emissions
- Empowering women-owned
and SME-led enterprises - Strengthening the technical
ecosystem for RE/EE deployment
How CRAF Works?
CRAF achieves its mission through three strategic pillars:
Credit Risk Instrument (CRI)
Providing a suite of credit risk enhancement products aimed at de-risking financing for RE & EE Investments.
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The CRAF Credit Risk Instrument (CRI) will provide a suite of credit enhancement products, to be issued to financiers, intermediaries, energy service companies (ESCOs) or funds, which are extending financing for RE and EE projects. The first product to be launched under this arrangement is a Partial Credit Guarantee. This default guarantee was chosen as the initial CRI instrument to address the issues of lack of collateral and/or balance sheet constraints by SMEs and would provide added comfort to financiers to lend beyond their normal course of business.
Currently, the CRAF CRI will offer maximum coverage of 80% of the principal and interest of an eligible RE and/or EE project loan. Access to the CRI will be facilitated via a streamlined application, assessment, approval and claims process using information provided by CRAF service providers and a modernized and innovative online platform.
It is envisioned that once the guaranty program is deemed successful, the facility will seek to expand its offerings under the CRI facility based on the demands of the market. This may include products such as performance guarantees and payback guarantees, for which demand has already been identified in the target markets.
Technical Assistance Programme (TAP)
Focused, project-specific support to ensure RE/EE initiatives are bankable and implementable. TAP services include:
- Energy audits, System Design, Project Implementation and more.
- Training and Institutional Structuring
- Project preparation support for SMEs and financiers
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The TAP will provide focused support for CRAF projects, counterparties and intermediaries, thereby stimulating demand by direct and indirect promotion of RE and EE projects, building financier capacity in financing of RE/EE projects, and assisting with sectoral
growth through targeting capacity building to service providers and intermediaries such as ESCOs. TAP will also be extended to SMEs, the final beneficiaries of CRAF.
Specifically, the TAP is expected to be offered to the following segments:
- Financiers will be offered training for loans officers and/or those encountering RE/EE projects from SME clients. This training will include topics such as RE/EE project origination and assessment; and
- Individual SMEs may be offered the TA in the development of project ideas which may be eligible for a guarantee under the CRI facility. Currently it is not envisaged that TA will be extended to SMEs and Industry Associations for general awareness raising and project origination outside of marketing campaigns undertaken by financiers.
- Technical Assistance
The CRAF TAP will be separately funded from the Credit Risk Instrument and will leverage and coordinate with other regionally focused technical assistance facilities, wherever possible.
CRAF TAP will support face to face training, online-training courses, manuals, and other SME focused RE/EE support deemed acceptable by the CRAF management team. This is expected to include workshops, expert placements, seminars, training courses and advice. The TAP will not aim to support general RE/EE market building for the most part, due to the presence of numerous active, general RE/EE focused TA facilities operating in the target CRAF jurisdictions.
Monitoring & Evaluation (M&E)
CRAF provides a robust M&E framework.
CRAF tracks energy savings, emissions reductions, job creation, and financial performance to ensure real impact and continuous improvement.
Key expected outcomes
Firm-Level Diagnostic Reports
Comprehensive assessments will be produced for each participating enterprise, delivering:
- A detailed baseline analysis of energy usage, financial performance, production capabilities, and barriers to competitiveness .
- Insights into phase-specific challenges, including regulatory constraints, limited access to capital, technical skill gaps, and operational inefficiencies.
- Strategic recommendations tailored to each project’s context.
Industry-Level Diagnostic Reports Aggregating Findings from Individual Firms
These consolidated assessments will:
- Aggregate common trends and constraints identified across sectors.
- Identify sector-wide challenges,
- Outline opportunities for interventions that can benefit multiple enterprises simultaneously.
Enhanced Understanding of Constraints to Competitiveness in Article 164 Enterprises
As a result of the monitoring and evaluation reporting and stakeholder interactions, CRAF and by extension its stakeholders will gain:
- Clear understanding into policy-level bottlenecks, such as tariff-related issues, regulatory burdens, or gaps in industrial standards.
- Identification of institutional and capacity constraints
Solutions Addressing Capacity and Performance Gaps
The initiative will:
- Design technical assistance interventions, such as energy audits, ESCO engagements, or management training, specific to each project’s needs.
- Enable SMEs to adopt clean energy technologies and energy-efficiency measures, backed by CRAF’s credit risk enhancement facilities.
Increased Efficiency, Production Capacity, and Competitiveness in Treated Enterprises
Ultimately, the expected outcomes includes:
- Measurable improvements in renewable energy generation, energy efficiency, and production throughput for supported enterprises.
- Heightened competitiveness in regional and international markets, facilitated by optimized processes, cost savings, and stronger alignment with market standards.
- Progress toward Article 164 objectives, namely temporary support and development of industries in lesser-developed countries to enhance their participation within the CARICOM Single Market and Economy
CRAF’s strategic objectives are:
- To be a practical, efficient and effective facility that is implemented with minimum transaction costs;
- To encourage sectoral development, lending and economic activity that is additional to that which would otherwise occur; and
- To be transformational, such that CRAF leads to lasting change in the operation of markets within the CARICOM region.
Our Stakeholders
CRAF works closely with various partners to support the transition to a low-carbon economy. These include:
Financial Institutions
Banks, Credit Union and others
Industry Associations
Groups advocating for cleaner energy practices.
Small and Medium-sized Enterprises (SMEs)
Across all sectors.
Energy Service Providers
Including Energy Service Companies (ESCOs) and technical experts involved in climate mitigation.
Technical assistance partners include the Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE) and the CARICOM Energy Unit.
Our Stakeholders Partners
CRAF works closely with various partners to support the transition to a low-carbon economy. These include:
Financial Institutions
Banks, Credit Union and others
Industry Associations
Groups advocating for cleaner energy practices.
Small and Medium-sized Enterprises (SMEs)
Across all sectors.
Energy Service Providers
Including Energy Service Companies (ESCOs) and technical experts involved in climate mitigation.
Technical assistance partners include the Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE) and the CARICOM Energy Unit.
Purpose and Goals
CRAF
CRAF was developed through collaboration between CDF, the CARICOM Secretariat, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), and other partners. The facility aims to:
Encourage additional lending from local financial institutions for RE and EE projects
Support businesses in adopting green technologies, thus improving their competitiveness.
Contribute to the development of the RE/EE sector in CARICOM Member States.
Reduce harmful greenhouse gas emissions by supporting the transition to cleaner energy.
Who Are Supported
CRAF provides Technical Assistance to the following eligible applicants:
- Commercial and Development Banks and Credit Unions
- Seeking to build a portfolio of RE and EE projects
- Seeking Support with credit decisions
- Legally registered and operating in CDF Member States
- Requiring Renewable Energy (RE) and Energy Efficiency (EE) Interventions
- With a defined need that supports bankability (eg. Audits, business plans and proposals)
- Support will be provided for
- renewable energy power generation technologies.
- Hybrid power solutions will be considered.
- Projects may involve installation of new power generation solutions or modification of existing power generation facilities.
- Accredited or seeking CRAF recognition
- Providing energy audits, design, engineering, or performance services
- Committed to regional RE/EE deployment
- Industry associations, training institutions, and NGOs involved in sustainable energy market development.
- Regional or national bodies supporting project pipeline growth and quality assurance.
CRAF will form partnerships with other regional technical assistance providers. Current CRAF Technical Assistance Partners are:
- The Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE), and
- The CARICOM Secretariat, Energy Unit.
Additional Eligibility Criteria
Projects must meet the following criteria:
- Be based in a CDF Member State:
(Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago) - Align with CRAF’s Environmental, Social, Gender, and Governance (ESG) safeguards.
- Undergo and pass KYC (Know Your Client) checks if receiving financial support directly.
What Is
NOT Eligible?
CRAF TAP will not fund:
- General awareness campaigns or non-project-related education
- Pure research or product development
- Commercial marketing or unrelated business expansion
- Projects without a clear RE/EE focus or link to CRAF-supported outcomes
Frequently Asked Questions (FAQs)
Welcome to the CRAF Help Centre. Here you’ll find answers to the most common questions about registering, accessing support, and participating in the Credit Risk Abatement Facility (CRAF).
What is CRAF?
CRAF (Credit Risk Abatement Facility) is a programme of the CARICOM Development Fund (CDF) that supports Small and Medium-sized Enterprises (SMEs), Energy Service Providers (ESPs), and Financial Institutions (FIs) in developing and financing Renewable Energy (RE) and Energy Efficiency (EE) projects. It offers Technical Assistance (TA), Credit Risk Guarantees (CRI), and project development support.
Who can participate in CRAF?
- SMEs in eligible CDF Member States
- Accredited Energy Service Providers (ESPs)
- Licensed Financial Institutions (FIs)
- Training, certification, or project development organizations aligned with RE/EE goals
Which countries are eligible?
CRAF aims to support stakeholders in the following 12 CDF Member States: Antigua & Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Saint Lucia, Saint Kitts & Nevis, Saint Vincent & the Grenadines, Suriname, Trinidad & Tobago.
QUESTIONS ABOUT REGISTRATION
How do I register for CRAF?
Visit the CRAF Portal, click “Register,” choose your profile (SME, ESP, FI), and complete the online form with your contact information and required documents.
How long does registration take?
Typically, 24 hours. You’ll receive an email notification once your account is approved.
What documents do I need?
Varies by user type. For example:
- SMEs: Business registration, utility bills (optional)
- ESPs: Certifications, project portfolio
- FIs: Focal point details, license to operate
TECHNICAL ASSISTANCE (TA) QUESTIONS
What kind of support is available through CRAF’s TA Programme?
CRAF offers project-focused technical support, including:
- Energy audits and feasibility studies
- PV system sizing
- Business model development
- Environmental and social assessments
- Training (linked to specific project needs)
Is general training or awareness funding available?
No. TA must support a clear RE/EE project opportunity or help develop the project
ecosystem (e.g., ESP certification).
How do I apply for TA?
Once registered, log in to the portal and complete a Technical Assistance Request
Form. You can also contact the CRAF Help Desk for support.
CREDIT RISK INSTRUMENT (CRI) QUESTIONS
What is the Credit Risk Instrument (CRI)?
The CRI is a partial credit guarantee provided to financial institutions to reduce the
perceived risk of lending to RE/EE projects.
Can I apply directly for a guarantee?
No. Guarantees are issued to Financial Institutions, not to SMEs. However, your project must be pre-qualified under CRAF guidelines and endorsed by a participating FI.
What types of projects are eligible for guarantees?
Projects involving:
- Rooftop solar PV
- Energy-efficient HVAC systems
- Refrigeration upgrades
- Water heating and building retrofits
- Off-grid or hybrid RE solutions
Does CRAF provide grants or loans?
CRAF does not directly provide loans or grants to SMEs. It offers:
- Technical Assistance (TA) to improve project bankability
- Partial credit guarantees (CRI) to de-risk loans from partner financial institutions
How can I get financing for my project?
Develop your project through CRAF Technical Assistance (TA). Once your project is bankable, your application can be supported by a CRAF-approved financial institution using the CRI.
Need Help?
Visit our [Help Desk] to contact the CRAF Technical Assistance Specialist for pre-
application guidance and support with identifying eligible opportunities.
