Green microfinance: the experience of Microfinanza
It is the new key to promote sustainable development and resilience in a steadily changing planet. Financial institutions, in fact, must face growing environmental risks, while adopting new green strategies indispensable to keep ticking over and foster clients’ sustainable growth. The microfinance sector is evolving to adapt to the growing global need of readjusting human activities, reducing the impact inflicted on the environment, enhancing our response to environmental shocks besides building new sustainable opportunities.
All in all, green microfinance proposes innovative solutions for tackling environmental and social challenges that are undermining the living conditions of the most fragile and vulnerable populations, who are increasingly exposed to climate change. Promoting green microfinance through innovative processes and products means changing the paradigm focusing not only on financial aspects but on social and environmental ones, too. So, both clients and financial institutions need to be equipped with new financial and non-financial instruments, that would help them to manage green incoming generating activities. Therefore, Microfinanza has developed different activities and tools, supporting both demand (clients) and supply (financial providers) sides, making it at the forefront in several countries like Morocco.
Microfinanza has focused on the in-house reinforcement of capabilities on reinforcing and restoring ecosystem services and promoting climate action, with the diversification of expertise within its team and the involvement of an environmental engineer specialized in international cooperation. Moreover, Microfinanza is an active member of the Green Inclusive and Climate Smart Finance Action Group of the European Microfinance Platform and is involved in the expansion of the sector through worldwide initiatives.