EcoMicro 2.0 [NDF C78]
EcoMicro 2.0 is aimed at consolidating the ecosystem needed for green microfinance to become a mainstream line of business for the microfinance sector in Latin America and Caribbean (LAC).
Latin America
EcoMicro 2
Ref: NDF C78
EUR 4.1 million
Project period: 2016-2021
Partner agency: Inter-American Development Bank (IDB) / Multilateral Investment Fund (MIF)
Objective
EcoMicro 2.0 is aimed at consolidating the ecosystem needed for green microfinance to become a mainstream line of business for the microfinance sector in Latin America and Caribbean (LAC). It will build on knowledge, experience and networks created during three years of execution of the
EcoMicro program financed jointly by MIF and NDF. Twelve microfinance institutions (MFIs) received technical assistance and training to develop green financial products. EcoMicro 2.0 will continue to develop the market by providing technical assistance, awareness-raising and training for at least 20 additional MFIs in the region. The program will also play a key role in connecting private and public capital with those MFIs that are ready to scale up their microfinance initiatives.
EcoMicro 2.0 will have the following activity clusters:
1. Demand-building and program preparation.
EcoMicro 2.0 will leverage from the awareness, interest and networks generated in the region during the first phase to further increase demand of MFIs in green microfinance.
2. Implementation of individual projects.
At least 20 additional MFIs, to be selected on a competitive basis through a call for proposals, will receive technical assistance from qualified consulting firms to: (i) develop and implement environmentally sustainable policies that will reduce energy costs and carbon emissions within the MFI, (ii) analyse the MFI loan portfolio’s vulnerability to climate change and development of risk management tools to mitigate this risk; and (iii) design and pilot test profitable and sustainable green finance products for adaptation and mitigation-related activities for their clients.
3. Consolidating the Green Microfinance Ecosystem and connecting successful pilot projects with private and public funds.
The program will facilitate cooperation between MFIs, technology providers, microfinance networks, and demand-side clients and will help broker strategic partnership agreements where appropriate. The program will also assess the viability of scaling up individual pilot projects from EcoMicro and EcoMicro 2.0. The program will analyse potential for collaboration with private and public funds with specific climate change goals. NDF’s financing will be channelled through MIF as joint co-financing, and will target projects mainly in the NDF partner countries Nicaragua, Honduras and Bolivia.
Financing
Total cost of the program will be USD 10,473,521 (approx. EUR 9.5 million), of which NDF will provide EUR 4.1 million.
NDF Contact
Michelle Voon, Program Manager (michelle.voon@ndf.int)
More information
ECOMICRO Regional Microfinance and Climate Change Program [NDF C35]
