Microfinance and Climate Change, 31st Midi de la Microfinance, Luxembourg, 23 April 2015

Microfinance and Climate Change, 31st Midi de la Microfinance, Luxembourg, 23 April 2015

After the World Earth Day, the 31st Midi de la microfinance talked about climate change and poverty reduction, two major challenges of the century. More than 130 participants attended the conference, and among the guest, François Bausch, Luxembourg Minister of Sustainable Development and Infrastructure, has honoured of His presence.

The debate between Runa Khan (Founder and Executive Director of Friendship) and Carla Palomares (Project Manager of Innovation in Inclusive Finance – ADA) was moderated by Jérôme Broutin (CFO – GDF Suez Rassembleurs d’Energies). The speakers shared their views and their experiences on their projects in green microfinance in Bangladesh and Peru.

Developing countries are the first to be impacted by climate disruption manifested by, inter alia, natural disasters. Climate change poses an immediate threat to economic development in poor countries. Through various initiatives, some microfinance institutions (MFIs) are addressing the specific aspects of climate change, including the need to reduce CO2 emissions, and work with green energy suppliers.

The question of the sustainability of the green initiatives by MFIs was discussed during the debate. The MFIs in Peru and Bangladesh face the same challenges. They need to train their staff on renewable energy services and products. In addition, the offer of green technologies for vulnerable population from the service providers needs to be stronger. Finally, the main challenge remains the delivery channels. A lot of MFIs clients live in remote rural areas, and the costs of reaching them is high.

Ben Fayot, Special Ambassador for the European Year for the Development, concluded the conference.

The 31st Midi de la Microfinance organised by ADA took place on April 23, 2015 in Luxembourg, with the support of the Directorate of Development Cooperation and Humanitarian Action, InFiNe.lu and in collaboration with Banque de Luxembourg.

In parallel with this conference, ADA published its magazine “Passerelles”, entitled “Microfinance and climate change”.

To read the press release in French click here

To read “Passerelles” magazines click here