Limited access to clean and efficient energy products and services affects quality of life, hinders socioeconomic development, impacts businesses’ bottom lines, and exacts high costs on the natural environment and climate.
In Latin America and the Caribbean, over 34 million people do not have access to electricity and over 85 million still rely on traditional biomass (e.g., wood and dung) for their daily cooking needs due to an immature market, a lack of demonstrated business models and a variety of technical, financial and institutional barriers that limit the penetration of modern energy technologies and services.
The MIF aims to develop and demonstrate viable business models and market-oriented approaches to expand access to cleaner and more efficient energy for micro, small and medium businesses (MSMEs) and lower income populations throughout the Latin American and Caribbean region.
- The MIF supports a holistic approach to expanding access to cleaner and more efficient energy, integrating all parts of the business cycle. This requires stimulating consumer demand by raising awareness and providing loans. On the supply side, it seeks to:
- Providing seed capital or technical assistance to small businesses that manufacture, supply, distribute, or repair cleaner technologies.
- Supporting MSMEs in adopting cleaner technologies.
- Promoting innovative financial products and services to finance the purchase of energy efficient goods.
- Piloting market development programs to bring modern energy technologies to underserved populations, such as clean cook stoves, biogas digesters, solar technologies, and small-scale hydro-electric generation.
- Developing energy services companies (ESCOS) in the region, and transferring ESCO models across the region.
Results and Impact:
- Households and MSMEs are providing or adopting cleaner and more energy-efficient technology as a direct result of MIF assistance.
- Increased numbers of women are providing or adopting clean energy or energy-efficient technology.
- Reduction or avoidance of GHG emissions.