Speakers Corner #29: Microfinance and Climate Change: Can MFIs Promote Environmental Sustainability? took place on 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. This Speakers Corner was led by Dan Lundmark who facilitated the panel of specialists from GreenMicrofinance including 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).
Topic Introduction
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.
Discussion Agenda
- 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?
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