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Microfinance loans are known to aid people in poverty by providing them access to funds as starting capital for modest businesses with sustainable income potential. Aside from this, microfinance has also shown impressive compatibility with environmental sustainability.
By itself, microfinance can already promote environmental preservation, albeit indirectly. Over the last thirty years, as impoverished people are given the chance to earn legitimately and sustainably, they are discouraged from laying waste to surrounding natural resources in an effort to find food and shelter.
Currently, “green microfinance” has is generating interest, especially with regard to its role in directly addressing the goals of financial and environmental sustainability.
Thus, microenterprises that produce eco-friendly products such as organic fertilizers and biomass charcoal briquettes, among others, and use environmentally sound business practices that protect the health of the communities and preserve nature, have become the priority beneficiaries of microfinance loans.
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Renewable energy entrepreneurship is also seeing a boost from microfinance loans. With homes and businesses using sources of energy that contribute substantially to greenhouse gas emissions and ecosystem degradation, microfinance has set up businesses that distribute solar-powered equipment, housing insulation, and other green initiatives. Some microfinance groups have also offered incentives to clients that leverage renewable energy systems.
As environmental preservation is becoming a major talking point in the global development agenda, microfinance has become a viable solution for national governments and social and environmental investors in enjoining those living in poverty in the drive towards sustainability.
Mercy Foundation has been at the forefront of poverty reduction efforts by aiding families through microfinance. They accept donations in the form of underutilized real estate assets to fund the loans they grant to those in need. Follow this Twitter page for more discussion about microfinance and real estate.
