Book

Assessing the Impact of Al-Amal Microfinance Bank’s Green Finance Practices on Client-Level Socioeconomic and Environmental Outcomes in Yemen examines how green finance can be implemented within a fragile and conflict-affected economy and how financial interventions can contribute to economic, environmental, and social outcomes. Focusing on 2023–2025, the study assesses AMB’s adoption of green finance across five dimensions: green financial products, portfolio allocation, environmental and social policies and ESG practices, partnerships, and institutional capacity. The findings show that green finance became an operational component of the Bank’s activities, particularly in renewable energy and sustainable agriculture. By 2024, AMB reported 1,866 cumulative green-finance facilities valued at more than YER 6.3 billion, representing 19% of its reported portfolio. The study also examines documented client-level outcomes. Among surveyed clients, 65% reported increased household or business income, 48% reported business or agricultural expansion, and 35% reported creating new local jobs. Environmental outcomes were evident through the adoption of solar energy, solar-powered irrigation, water-efficient technologies, and electric mobility, alongside reduced dependence on conventional energy sources. Importantly, the study takes a critical approach to impact measurement. While the evidence demonstrates observable environmental change, systematic client-level measurement of fuel savings and CO₂-equivalent reductions remains limited. The research therefore distinguishes documented environmental outcomes from fully quantified environmental impact. Drawing on mixed-methods research, institutional records, sustainability reporting, quantitative evidence, and interviews, this study contributes to the emerging literature on green finance in fragile economies and offers practical insights for financial institutions, policymakers, development partners, and researchers.