Assessing the Impact of Al-Amal Microfinance Bank’s Green Finance Practices on Client-Level Socioeconomic and Environmental Outcomes in Yemen

Green finance has gained importance as a mechanism for aligning financial intermediation with environmental sustainability and inclusive economic development. However, empirical evidence on its implementation within microfinance institutions operating in fragile and conflict-affected economies remains limited. This study examines the extent to which Al-Amal Microfinance Bank (AMB) has adopted green finance practices and assesses the measurable socioeconomic and environmental outcomes associated with these practices in Yemen during 2023–2025. 

The findings indicate substantial adoption of green finance across five dimensions: green financial products, portfolio allocation, policies and ESG practices, partnerships, and institutional capacity. By 2024, AMB reported 1,866 cumulative green-finance projects valued at more than YER 6.3 billion, with green financing accounting for 19% of its reported portfolio. Client-level evidence indicates economic outcomes including increased income, business expansion, and employment, alongside environmental outcomes centered on renewable-energy and clean-technology adoption. Social outcomes include expanded energy access, household cost savings, and improved resilience. However, systematic measurement of client-level fuel savings and CO₂-equivalent reductions remains limited.