Bundesinitiative Impact Investing

Green Micro­fi­nan­ce Pro­grams in Deve­lo­ping Economies

Exci­ting insights from the recent web­i­nar on “Inves­t­ing in Sus­taina­bi­li­ty: A Look at Green Micro­fi­nan­ce Pro­grams in Deve­lo­ping Eco­no­mies” we had on 23rd May, 2023. Impact inves­tors are actively sup­port­ing micro­fi­nan­ce insti­tu­ti­ons in the Glo­bal South, hel­ping them pro­tect the envi­ron­ment and enhan­ce cli­ma­te resilience.

Green micro­fi­nan­ce aims to redu­ce envi­ron­men­tal impact and mana­ge risks within insti­tu­ti­ons ser­ving low-inco­me popu­la­ti­ons. During the web­i­nar, mode­ra­ted by Micha­el Hoff­mann, Finan­ce in Moti­onJor­dan Pace, and Blue­Or­chard Finan­ce LtdYann Groe­ger Gre­gor show­ca­sed their efforts, and Nata­lia Real­pe Car­ri­l­lo from HEDE­RA – DIGI­TAL SOLU­TI­ONS FOR SUS­TAINABLE DEVE­LO­P­MENT shared valuable insights on Green Microfinance.

Blue­Or­chard focu­ses on redu­cing cli­ma­te foot­prints, asses­sing port­fo­lio risks, and pro­vi­ding green len­ding opti­ons. Their pro­jects include solar sys­tems, sani­ta­ti­on, water infra­struc­tu­re, and ener­gy effi­ci­en­cy measures.

Finan­ce in Moti­on mana­ges funds with a strong envi­ron­men­tal and social impact focus. They col­la­bo­ra­te with micro­fi­nan­ce insti­tu­ti­on part­ners to address diver­se envi­ron­men­tal chal­lenges, such as agri­cul­tu­re bio­di­ver­si­ty and sus­tainable crop production.

Key takea­ways:
1. Step-by-step inte­gra­ti­on, encom­pas­sing stra­tegy, risk manage­ment, and pro­duct deve­lo­p­ment, can signi­fi­cant­ly redu­ce vul­nerabi­li­ty for cli­ents and insti­tu­ti­ons alike.

2. Tech­ni­cal assis­tance plays a pivo­tal role in buil­ding capa­ci­ties and pre­pa­ring insti­tu­ti­ons for green invest­ments, enab­ling them to pro­vi­de rele­vant pro­ducts and services.

3. Inte­gra­ting cli­ma­te finan­ce can be chal­len­ging, but insti­tu­ti­ons are deve­lo­ping com­pel­ling busi­ness cases and mee­ting cli­ent demands!

Last but not least: 
- Stay tune to the upco­ming digi­tal green map: the @European Micro­fi­nan­ce Plat­form is deve­lo­ping a glo­bal ‘Green_​Map of expe­ri­en­ces to enhan­ce cli­ma­te resi­li­ence from micro­fi­nan­ce institutions.