Can Clean Energy Be Delivered by the Microfinance Sector Help? by sadmin
Posted on Sunday, September 4th, 2016
Can Clean Energy Be Delivered by the Microfinance Sector Help?
Offering financial products that empower customers that are poor to buy clean, low-carbon options to firewood, kerosene and other traditional fuels is possibly the most direct manner where microfinance can be marshalled maintain environmental resources and to fight climate change.
In the viewpoint of a customer who lacks access to modern energy, the attractiveness of options like small scale solar charging apparatus and efficient cookstoves, naturally, isn’t, nor probably ever will be, about cutting carbon. Luckily, it doesn’t need to be. Energy poor families and companies aspire for accessibility to options that save them time and money, optimize convenience, ease new kinds of leisure and work, and provide first-class and higher levels of service. What this means is that clean energy end user finance is rooted in choices and the immediate needs of customers, and so driven by bottom up consumer demands rather than top down appeals to environmental stewardship.
The argument is only going to become more powerful as this tendency continues.
Private sector involvement is driving much of the change. For instance, new iterations of solar charging apparatus enter the marketplace every year.
At exactly the same time, traditional rural energy sources like kerosene and firewood grow more high-priced, cost tight and explosive through time, and, therefore, become greater sources of economic stress and insecurity for families and companies. It has clear operational significance for MFIs that pick to participate: investments in customer sensitization efforts to ‘shove’ environmental gains will decrease because, more and more, MFIs will be easing possession of products which are high demand ‘pull’ merchandises.