Speaker's Corner 29: Microfinance and Climate Change: Can MFIs Promote Environmental Sustainability?: MicroLinks- Microenterprise Learning Information and Knowledge Sharing (4.1.3 )

Icon: Speaker's Corner Microfinance and Climate Change:
Can MFIs Promote Environmental Sustainability?
www.microlinks.org/sc/greenmicrofinance

November 18-20, 2008
Close to 200 participants from 43 countries participated in this discussion in November 2008. Hosted by GreenMicrofinance, the forum discussed a range of topics and allowed participants to connect and learn about each other's activities. The knowledge shared and generated in this discussion also informed a May 2009 Microfinance Gateway Highlight on Microfinance and the Environmental Bottom Line.

Thanks to all facilitators and participants for this thoughtful discussion. This discussion is now closed, but you can continue to review the postings and related resources.

Download the Discussion Compilation Document, which includes all messages posted in the forum.
Download the Synthesis Document for a summary of the discussion and glossary of relevant terms.
Scroll down to see all discussion postings in the forum, or read:
- The Forum Welcome Message by Dan Lundmark.
- Day 1 Summary by Kathleen Robbins.
- Day 2: How can MFIs promote environmental sustainability while reducing poverty? by Dan Lundmark.
- Day 2 Summary by Betsy Teutsch.
- Day 3: What is the role of donors and investors in ensuring environmental sustainability of an MFI and their clients? by Dan Lundmark.
- Day 3 Summary by Bela Vora.
Download resources shared by forum moderators and participants.
E-mail any feedback or questions to us at speakerscorner@microlinks.org.
To learn more about upcoming Speaker's Corners and other microLINKS activities and resources, sign up for the monthly Connections newsletter.

Introduction to this discussion: Greenhouse gas emissions are causing global warming, which is a threat to us all; but the people who can least afford global warming and cope with its ill effects are the people at the base of the pyramid--the very people our organizations are designed to serve. Microfinance was developed to help lift this segment of humanity out of poverty, and now, as we recognize and acknowledge the dangers of climate change, the question emerges: what can and should be done to help microfinance clients mitigate the worst effects of climate change? What is the role of MFIs in stemming this tide?

Some MFIs have been slow in adopting environmentally sustainable practices and promoting them among their clients. At the same time, more and more MFIs, such as Evangelical Social Action Forum, Wesco Credit, and MIMO Finance, are recognizing that it is not only possible to promote environmentally sustainable practices, but that it is also good for everyone involved. Why is this? Can an MFI practice and promote ‘Green' solutions while simultaneously remaining financially solvent? Is fostering and promoting environmental sustainability a valid role for an MFI?

These are some of the questions that were discussed in this three-day online discussion. Read the postings below to explore how to include the world's 175 million MFI clients in an effort to save our planet and improve their lives at the same time.

Daily topics:

Hosted by Dan Lundmark, this Speaker’s Corner was facilitated by a panel of specialists from GreenMicrofinance -- Joan Hall, Elizabeth Israel, Thomas B. Israel, Kathleen Robbins, Betsy Teutsch, and Bela Vora -- and from three Indian MFIs -- Manab Chakraborty (MIMO Finance), Paul Moonjely (Wesco Credit), and Paul Thomas (ESAF).

Each day participants were invited to share their own experiences, questions and comments in the discussion forum:

Day 1 (Tuesday, November 18) - What is the impact of microenterprise and microfinance clients on the natural environment? Some key questions discussed: How do small and micro-entrepreneurs impact global warming? What impact does cooking techniques/fuel have on the environment? On health? What does energy have to do with safe, clean water? What impact is the current increase of food and fuel costs having on MFI clients? What are you doing to help your clients meet the rising food and fuel costs?
Day 2 (Wednesday, November 19) - How can MFIs promote environmental sustainability while still meeting their 'core mission' of reducing poverty? Key questions included: What is the role of the MFI Board of Directors in promoting environmental sustainability? How does an MFI distinguish between a 'consumer' loan and a 'productive' loan? Why is that distinction important when considering environmentally sustainable lending? What are the challenges for an MFI in scaling up a clean energy initiative?
Day 3 (Thursday, November 20) - What is the role of donors and investors in ensuring environmental sustainability of an MFI and their clients? Key questions included: How often do you hear an investor or donor express interest in an MFI's environmental sustainability efforts? How should the effectiveness of an MFI's environmental sustainability program be measured? What are the 'key components' of an effective MFI environmental sustainability program?

What's a Speaker's Corner?
A Speaker's Corner is an online discussion designed to help practitioners share and learn from each other's experiences. You can participate by reading and posting messages directly on this page or by responding to postings through your e-mail. Speaker's Corners are organized monthly. An overview of upcoming discussions is posted on our main Speaker's Corner page. See also the frequently asked questions about virtual conferences. We look forward to your participation in this event.

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Documents

Synthesis Document Green Microfinance SC Synthesis.pdf Publication Date 10/2009

Microfinance and Climate Change: Can MFIs Promote Environmental Sustainability? Compilation Document of the November 18-20 2008 online discussion SC-29_greenmicrofinance compilation document.pdf Publication Date 12/2008

The Role of Decentralized Renewable Energy Technologies in Adaptation to Climate Change in Developing Countries ClimateChangeandRenewableEnergy.pdf Publication Date 08/2008

Wesco Credit !! WESCO !! Brochure 2008.pdf

Rajarata Community Development Partnership - Sri Lanka Community Development Youth Organization.pdf

Interaction Bio Energy Management Program Interaction BioEnergy Management Program - Sri Lanka.doc

The Equator Principles Equator_Principles.pdf Publication Date 2006

Environmental Protection and Microenterprise Development in the Developing World Environmental_Protection_and_Microenterprise_Dev.pdf Publication Date 04/2003

Waste To Wealth Waste_To_Wealth_11.02.08[1].pdf

Climate change , agriculture and food security

GMf-Wharton 2006 Microfinance and Environment Roundtable GMf_Wharton Roundtable Summary.pdf

Generally Accepted Environmental Principles for Microfinance Institutions GAEP.pdf

Website Link

Barefoot Power (Go)

FMO environmental and social risk management tools for microfinance institutions (Go)

GreenMicrofinance's Website (Go)

Human and Community Development Youth Organization (Go)

Land o Lakes International Development (Go)

New American Foundation (Go)

SKG Sangha (Go)

Solar Household Energy (Go)

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Discussions

Microfinance and Climate Change ID: 27833

Subject	Views	new	Posts
Day 3 Summary One of the major questions discussed on Day 3 was - What is the role of donors and investors in ensuring environmental sustainability of an MFI and their clients? Many areas came up - including need ...	438		3
Day 3: What are the 'key components' of an effective MFI environmental sustainability program? In 2006, GreenMicrofinance co-hosted the GreenMicrofinance-Wharton Roundtable on Microfinance and the Environment: Setting the Research and Policy Agenda. Bob Christen, now with the Bill & ...	542		4
Re: Thanks Thanks a lot for inviting me to be part of the discussion. Lalita Balakrishnan Formatted by: Anna Van der Heijden ::::::::::	366		1
A missing question? MF as a safeguard against impact of climate change I look forward to the next three days' discussions. I wonder, however, if there's another question that needs to be asked, in addition to the ones posed in this week's speaker's corner: how can ...	565		10
Thank you - and stay in touch with microLINKS Dear participants, This Speaker’s Corner is over, though as Bela mentioned, a summary will be posted tomorrow, and the forum will remain open for everyone to post their final messages over the weekend ...	437		2
Day 1: What impact do cooking techniques/fuel have on the environment? On health? In the rural village of Palpa Tansen, a small ancient hill station located about 12 hours by bus from Kathmandu, I lived with my family for 3 years. I came to know well the impact of smoke ...	799		11
More opportunity to contribute! Thank you to all those involved in the discussion, as participants as well as observers. Tomorrow there will be a summary of the entire topic of Microfinance and Climate Change and the forum will ...	376		1
Day 3: How often do you hear an investor or donor express interest in an MFI's environmental sustainability efforts? I think investors tend to compartmentalize their passions for social good. So those involved in MFI lending may be concerned about the environment but not actively involved in sustainability efforts ...	412		2
RE: Day 3: Cost of Altertnative products ?? Financing of Alternative Products Friends A similar issue is the issue related to financing of various environment related financial products. Who would pay for it??? Does subsidy an answer? If then what could be the amount or the ...	370		1
Day 3: What is the role of donors and investors in ensuring environmental sustainability of an MFI and their clients? Our last day! I look forward to reading your amazing stories and responding to dialogue as we continue with today's topic: What is the role of donors and investors in ensuring environmental ...	565		9
RE: Day 3: FROM PAUL THOMAS From PAUL THOMAS Dear Friends First of all my sincere apology for not being very active for the past few days in the discussion because I have been too busy past couple of days though I sincerely ...	451		1
Day 2: How does an MFI distinguish between a 'consumer' loan and a 'productive' loan? Why is that distinction important when considering environmentally sustainable lending? When I was in Haiti, I saw children studying in the evening under the security light at the local MFI building. Most of these were children of this same MFI and so the dilemma for the MFI was should ...	594		4
Day 3: How should the effectiveness of an MFI's environmental sustainability program be measured? The concern was raised on Day 1 that if sustainability is added to Social Performance Monitoring for a MFI that it might become a numbers game and not measure the really important issues. When ...	391		1
Day 2: How can MFIs promote environmental sustainability while reducing poverty? What a great first day -- thanks to each of you who have posted so far!The topic for Day 2: How can MFIs promote environmental sustainability while still meeting their 'core mission' of reducing ...	705		5
DAY 2 SUMMARY: Poverty alleviation and environmental concerns Day 2 Summary:How can MFIs promote environmental sustainability while still meeting their 'core mission' of reducing poverty? The story of our online forum today is the older model of seeing the ...	475		1
Day 1: Welcome to Speaker’s Corner 29 Welcome to all of you joining us from many countries around the world. I am honored to host this forum and look forward to a lively dialogue as our facilitators guide us through the intersection of ...	630		18
Welcome to this discussion forum! Welcome - This is the area on the Website where the discussion will take place on November 18-20. To participate, please sign up, and when you are set up we'll send you a confirmation e-mail with more ...	501		4
Day 1 How do small and micro-entrepreneurs impact global warming? In Haiti, a land more mountainous as a percent of land than Switzerland, the only source of income and cooking energy for many is charcoal. Consequently, mountainsides on this tropical rainforest ...	422		2
Day 1: What impact is the current increase in the price of food and fuel on MFI clients? We're interested to learn what you are doing to help your clients to meet food & fuel costs. How are your MFI clients coping with this situation? If you have any clients that already have obtained ...	445		6
Re: Day 1: What impact do cooking techniques/fuel have on the environment? On health? Dear Raj and Koin: The cheapest biodigestors would be the bag design which vary in cost; however in Central America they've averaged about $130/biodigester. This cost is for a 9m biodigester a ...	374		2
Applying Practical Agricultural Activities to Mitigate the Impact of Global Warming and Climate Change on Agricultural Production My name is Raanan Katzir. Living in Israel.Director of Sustainable Agriculture Consulting Group (SACOG) I am dealing with doing consultancies, university and farmers lecturing and ...	506		2
Organic Farming & Solid Waste In Sri Lanka most of our rural farmers are using chemical fertilizer for cultivation. At present they use 400% more than recommended quantity. Rescen behind that is over usage of chemical hse been ...	465		3
Re: SPAM-LOW: Sam Grant - XacBank [Microfinance and Climate Change] Sam:In your case, I'd recommend more permanent biodigesters versus what we've implemented. Since we work in the tropics, we've used simplified polyethylene biodigesters or bags; however I'd recommend ...	441		1
Day 2: What are the challenges for an MFI in scaling up a clean energy initiative? Wesco Credit in Kerala, India, has already installed 350 family-size biogas units, as well as commercial-style plants. They are now planning to scale up its biogas initiative. Over ...	404		1
Sam Grant - XacBank My name is Sam Grant and I am currently working at XacBank in Mongolia. We are in the process of creating our green product policy. I have read that GreenMicrofinance has helped establish biogas units ...	418		2
Day 1 Summary Day 1 Summary Well, it was a great first day and we have two more to go! Thanks to all of you who contributed and to Dan for his leadership. I think it can be safely said that one o ...	436		1
Day 2: What is the role of the MFI Board of Directors in promoting environmental sustainability? Greetings, Everyone, and welcome to Day 2 of the Speaker's Corner on Microfinance and Climate Change. The conversation so far has been very stimulating. We've heard from people from different parts of ...	446		1
Re: Day 1: Welcome to Speaker s Corner 29 Hi Grace:Thanks for your comments and I agree. Sustainable Harvest International has been working extensively with Mayan farmers in southern Belize to further develop sustainable techniques to growing ...	451		2
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