The MIF and Nordic Development Fund’s (NDF) EcoMicro program had a busy 2015. For those of you unfamiliar with EcoMicro, this award-winning program provides technical assistance to financial institutions to develop green lending products, measure and mitigate climate risk in their portfolios, and reduce the environmental impact of their own operations.
Last year, we completed selection and design of 5 projects, bringing the total number of projects supported by the program to date to 12. We also convened a workshop at the Foromic event in Chile, during which the first study of the state of green microfinance in the region was released, models for green lending were shared, and investors and technology companies linked with MFIs. Over 150 representatives of financial institutions, investors, technology firms, and networks participated in the event, and an additional 100 attended a formal session on green finance during the main Foromic conference. It was a busy, but very fruitful event as we saw many business connections made.
In 2015 we were very happy that the MIF and NDF also reaffirmed their commitment to the program, extending it through 2020 and re-capitalizing it with $2.5M from the MIF and $4.2M from the NDF. When these amounts are added to previously approved funds, the program’s resources total $17M. I was recently interviewed by the UN Framework Convention on Climate Change to talk about this increase, the state of the green finance market going forward, and the benefits of being named a UNFCCC Momentum for Change Award Winner at the COP, Lima.
In 2016 the MIF will begin the process of deploying the new program resources into projects, and will embark on an ambitious effort to consolidate the green microfinance ecosystem, developing enduring linkages between MFIs, experts, technology providers, and investors. Be on the lookout for our call for proposals and invitations to participate in EcoMicro activities!